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Win 2 trades out of 10 and win 180 pips

  • Post #1
  • Quote
  • First Post: Nov 4, 2007 10:02pm Nov 4, 2007 10:02pm
Hi, I just stop by in a very interesting website that talks about money management, in the website was the following example


You have 2 accounts with 2 different money managements


Account A (80% win ratio)

15 Pips TP, 15 Pips SL

You win 8 trades and lose 2.
Based in 10 lot investment each profit/loss would be 1500 USD

The result for account A is 90 pips profit 9000 USD



Account B (20% win ratio)

150 Pips TP, 15 Pips SL

You win 2 trades and lose 8
Based in 10 lot investment each loss would be 1500 USD, each profit would be 15000 USD

The result for account B is 180 pips 18000 USD


This is only an example, I think it is very difficult to make 150 pips with a 15 pips stop loss, but with a 20 or 25 pips stop, I see it happen quite a lot of times in many currencies, I want to hear your opinions about the strategy, and examples of people that use this kind of MM, what currencies trade etc.

I hope this info was useful


Best regards MASMP_FX
Logic will get you from A to B. Imagination will take you everywhere.
I would rather have a 1:1 R:R ratio with 80% than a 10:1 R:R with 20% wins. There would be multiple reasons different people would chose one over the other. I do believe in a good MM with better than 1:1 but 10:1 is a lot although some may disagree with me.

Also system 2 seems like the set ups would be few and far between so in essence even though you only get 90 pips from system 1 by the time system two hits its "success rate" you could have double the trades or more with system one.

Plus mentally losing 2 out of 10 could be tiring on some people. Both work but there for two different people. The 10:1 ratio gets me though.
Excuses are the tools of incompetence
Quoting Masmp_FX
Hi, I just stop by in a very interesting website that talks about money management, in the website was the following example


You have 2 accounts with 2 different money managements


Account A (80% win ratio)

15 Pips TP, 15 Pips SL

You win 8 trades and lose 2.
Based in 10 lot investment each profit/loss would be 1500 USD

The result for account A is 90 pips profit 9000 USD



Account B (20% win ratio)

150 Pips TP, 15 Pips SL

You win 2 trades and lose 8
Based in 10 lot investment each loss would be 1500 USD, each profit would be 15000 USD

The result for account B is 180 pips 18000 USD


This is only an example, I think it is very difficult to make 150 pips with a 15 pips stop loss, but with a 20 or 25 pips stop, I see it happen quite a lot of times in many currencies, I want to hear your opinions about the strategy, and examples of people that use this kind of MM, what currencies trade etc.

I hope this info was useful


Best regards MASMP_FX
This is only true in theory.... not in real trade...
wat about the best of both worlds , 80% chance n 1:10 ratio ?
To Live is the rarest thing in the world , Most people exist , that is all
Quoting 3013
This is only true in theory.... not in real trade...
Like I said it happens, not many times, I saw once a setup in one of my systems that reached 500 pips in GY, and with a 25 pips stop loss, I would not be stopped, and many other setups I have witnessed in my backtests with the same results.

Thanks for the reply
Logic will get you from A to B. Imagination will take you everywhere.
Quoting maheswara
wat about the best of both worlds , 80% chance n 1:10 ratio ?
These forums wouldn't have many posts then
Excuses are the tools of incompetence
Quoting maheswara
wat about the best of both worlds , 80% chance n 1:10 ratio ?

Well, do not be so greedy, a 50% chance would be FANTASTIC, and 100% possible, but requires lot of headaches with backtesting, and a lot of experience, but the first and the principal ingredient, a lot of “belief”

Thanks for the reply
Logic will get you from A to B. Imagination will take you everywhere.
Quoting Masmp_FX
Well, do not be so greedy, a 50% chance would be FANTASTIC, and 100% possible, but requires lot of headaches with backtesting, and a lot of experience, but the first and the principal ingredient, a lot of “belief”

Thanks for the reply
check out 5 mins trend follower thread , the system got like 1:5 n 75%
To Live is the rarest thing in the world , Most people exist , that is all
  • Post #9
  • Quote
  • Last Post: Nov 5, 2007 2:46pm Nov 5, 2007 2:46pm
Quoting maheswara
check out 5 mins trend follower thread , the system got like 1:5 n 75%

Well, I don’t like to trade in small TF, I trade 1h or 4H, and I have my own system that makes profit, just did a small test in my system in January with SL 50 Pips, TP 250 Pips

Following the rules of my system, January did 1260 pips, with MM SL 50, and TP 250, without riding the trend, my result was 1533 pips, and noticed also that the good trades that gave-me more than 100 pips, rarely retraced more than 30 pips.
Logic will get you from A to B. Imagination will take you everywhere.
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