What's your TP? Fixed reward vs dynamic reward | Forex Factory

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What's your TP? Fixed reward vs dynamic reward

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  • What's your TP?
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  • #1
  • First Post: May 8, 2018 9:26am May 8, 2018 9:26am
It seems psychologically harder to have fixed reward such as 1R, 2R etc.. Especially when the market shoot through your fixed tp for more than 10R.


On the surface, dynamic reward seems logical and more profitable yet its harder to decide when to tp.


To clarify: dynamic tp means you take half position at 1R and let the other half runs to the dynamic tp.

What's your views on reward taking? Do you have fixed or dynamic and why?
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  • #2
  • May 8, 2018 10:30am May 8, 2018 10:30am
Fixed reward is better to trade. Less volatility and better sleep. Don' care about the moves that continue care about the ones that reversed shortly after you took profit.
When you see it, BET big.
  • #3
  • May 8, 2018 10:55am May 8, 2018 10:55am
Hi my risk reward ratio is fixed if you consider it by taking into account percentage wise and dynamic if you consider it as per points.

For example;-

If my system gives me buy signal my stop loss and take profit would be 40pips both plus the spread.
in my second trade my system gives me sell signal so my tp and stl would be 25pips.
But i always risk only fixed percentage of my account per trade and thats my money management.[1 percent in my case]

So regardless of the pips size difference in my every trade my risk to reward percentage per trade remains the same.
No one ever Discovered anything new by colouring inside the lines.
  • #4
  • May 8, 2018 11:02am May 8, 2018 11:02am
Quoting Rennaissance
Fixed reward is better to trade. Less volatility and better sleep. Don' care about the moves that continue care about the ones that reversed shortly after you took profit.
What is it in terms of multiple R?
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  • #5
  • May 8, 2018 11:05am May 8, 2018 11:05am
Quoting Hdhorda4
Hi my risk reward ratio is fixed if you consider it by taking into account percentage wise and dynamic if you consider it as per points. For example;- If my system gives me buy signal my stop loss and take profit would be 40pips both plus the spread. in my second trade my system gives me sell signal so my tp and stl would be 25pips. But i always risk only fixed percentage of my account per trade and thats my money management.[1 percent in my case] So regardless of the pips size difference in my every trade my risk to reward percentage per...
So that's a fixed then. I wonder what you think of dynamic reward? For example you enter a trade and instead of having 40 pips tp you let it run to the end of day or moving average crossover etc?
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  • #6
  • Last Post: May 8, 2018 11:10am May 8, 2018 11:10am
Quoting zghnno
{quote} So that's a fixed then. I wonder what you think of dynamic reward? For example you enter a trade and instead of having 40 pips tp you let it run to the end of day or moving average crossover etc?
Yes it could be an interesting approach which i am looking to consider in future.When i will develop new strategies,
But as for now i am satisfied with my systems fixed risk to reward ratio because of my winning rate percent is 65 percent on an average.
Meaning i win 65 trades out of 100 trades on an average with 1;1 risk to reward which i consider to be quite good.
No one ever Discovered anything new by colouring inside the lines.
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