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In my experience traders will always prefer 60% win rate and 1/1 r/r over 40% win rate and 2/1 r/r...Ignored
Psychology, what a bummer that is!
Rationale behind "Risk Per Trade" and "Risk/Reward Ratio"? 8 replies
Regarding risk/reward ratio 10 replies
Is a high risk reward ratio overrated? 12 replies
Good reward/risk ratio experiment 20 replies
Risk Reward Ratio and Account Risk 30 replies
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In my experience traders will always prefer 60% win rate and 1/1 r/r over 40% win rate and 2/1 r/r...Ignored
DislikedI agree, but surely if the market has the potential to offer more then it would be counter productive to deny it that opportunity simply because of some arbitrary R:R figure conjured up by a trader who has a need to be right more times than wrong and an urge to constantly bank profit, that wouldn't make sound financial or logical sense would it?
I know there's a saying about a bird in the hand but come on, why settle for one bird when there are potentially two, three, or more just there for the taking, especially when the risk is the same...Ignored
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Why go for a POTENTIAL 5+% a week when I can make a LIKELY 5+% a week and do this most weeks and still attract investors.
The key for me in all this is the unpredictability that's taken out of my equity curve.Ignored
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I've never understood or been able to take PARTIAL profits. Always seemed so half arsed to me, but I think one I will likely adapt to something of this nature. Who knows.Ignored
DislikedThe (unreliably reported) short term performance of Oanda traders is now the yardstick by which we measure success, and those are the people we should aspire to emulate in our trading? Really?
Oh boy, why didn't anyone tell me this before!
~16 pips 1:1 trading Eur/Usd over the past week, wooohooo!Ignored
DislikedThe forex markets are the most trending of any markets out there,Ignored
DislikedThats a myth. the forex trends and consolidates the same as equities and commodities. The forex market is more difficult to trade than other markets because of volatility. It has become popular because it moves quickly, not because it trends more. It is the ideal market for impatient people and thats the same reason the average forex account lasts 3 monthsIgnored
Dislikedmaybe true, maybe not..
can't really say forex is more volatile than equities or commodities though, you ever watch gold and oil on m15?Ignored
DislikedIt's all potentially, nothing is guaranteed. If it's greed then the other side of the coin is fear, the fear of losing (profit). Neither really have a place in trading, least of all fear, it can be paralysing.
Adjusting exposure (up and down) is an integral part of trading in my opinion, the market is shades and rarely black or white.Ignored
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Oanda has the largest client base in the industry and the data sample includes both retail and institutional traders. 16 pips/trade trading EUR/USD 1:1 made them the top earners with the largest broker.Ignored
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I suppose youve been pyramiding into the downtrend since 1.32 cause you are superior to this group?Ignored
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Nobody trades the forex market, or any other market this way and makes money any more. Buy and hold hasnt worked for 10 years. the knowledge you are using to argue your point is redundantIgnored
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All true... But I'm sure you will admit with exploiting a good point of entry in the market 1:1 is much more LIKELY (not guaranteed) the big ones are much more potentially.Ignored
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Thanks for your thoughts on this. Gotta run before those pesky beagles get a sniff hahaIgnored
DislikedLet's assume those stats prepared by Oanda themselves are accurate and representative, how about some more stats like consistency, account longevity, overall return on risk, and overall P&L? Also not just for a week!Ignored
DislikedYou could look at FF's trade explorers. The 2012 leader board for live accounts shows the same pattern. High win rates and approx 1:1 average win loss ratios for all the top earners.
BUT beware statistics! Look beyond the averages and you will see that the maximum wins for all the top performers are many times the average. It seems they are not cutting all their winners short, but are taking more profit when the potential arises.Ignored
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Main issue with 1:1 is, your next loss writes off your previous profit, atleast with 2:1, even if you lose 50% of the time your still gaining ground.Ignored
DislikedSee how long one account can stay up the top for. If you look at the winners of the trading competitions those guys get lucky too.
Not knocking the logic of letting winners run but 2012 isn't over yet hopefully FF allow GfT dealbook accounts on trade explorer before then.
That said I better go and have a sticky beak before jumping to conclusions.
I'd rather a steady spot in the middle than an unsustainable spot at the top.Ignored