Traders with low win rate use this Risk management to control DD

Traders with low win rate use this Risk management to control DD

Risk management is for Low risk takers


#1 back test and find max number of Consecutive losses.
Example if you have 10 Consecutive losses max.
You can use max risk is 5%
10 X 3 = 30 / 5 = 0.16 % risk on each trade.


#2 When you use R R in your strategy.
Example:
If R R 1 : 1
If 10 X 3 = 30 / 1 = 30 / 5 = 0.16 % risk on each trade.

If R R 1 : 2
If 10 X 3 = 30 X 2 = 60 / 5 = 0.08 % risk on each trade.

In this way you reduce your risk on each trade
If you use both steps and you are using R : R 1 : 2
than you will use 0.08% risk = 60 times in a row hit SL to your trades to have 5% DD
but your back test for 1 year shows max Consecutive losses are 10 it means you will never have more than 0.80% DD at any time on a daily basis and you can not ruin your account at all.

Risk management is for medium risk takers

#1 back test and find max number of Consecutive losses.
Example if you have 10 Consecutive losses max.
You can use max risk is 5%
10 X 2 = 20 / 5 = 0.25 % risk on each trade.


#2 When you use R R in your strategy.
Example:
If R R 1 : 1
If 10 X 2 = 20 X 1 =20 / 5 = 0.25 % risk on each trade.

If R R 1 : 2
If 10 X 2 = 20 X 2 = 40 / 5 = 0.12 % risk on each trade.

In this way you reduce your risk on each trade
If you use both steps and you are using R : R 1 : 2
than you will use 1.2% risk = 42 times in a row hit SL to your trades to have 5% DD
but your back test for 1 year shows max Consecutive losses are 10 it means you will never have more than 1.2% DD at any time on a daily basis and you can not ruin your account at all.

Risk management is for high risk takers

#1 back test and find max number of Consecutive losses.
Example if you have 10 Consecutive losses max.
You can use max risk is 5%
10 X 1 = 10 / 5 = 0.50 % risk on each trade.


#2 When you use R R in your strategy.
Example:
If R R 1 : 1
If 10 X 1 = 10 X 1 =10 / 5 = 0.50 % risk on each trade.

If R R 1 : 2
If 10 X 1 = 10 X 2 = 20 / 5 = 0.25 % risk on each trade.

In this way you reduce your risk on each trade
If you use both steps and you are using R : R 1 : 2
than you will use 2.5% risk = 20 times in a row hit SL to your trades to have 5% DD
but your back test for 1 year shows max Consecutive losses are 10 it means you will never have more than 2.5% DD at any time on a daily basis and you can not ruin your account at all.

Traders who have high win rate can use high risk because they know what they are doing.

To achieve high win rate, I understand no indicator can make high win rate until you decide to do something different.
What is that something different

Add multiple Logical Filters and Math filters.

I am using 12 Logical and Math filters on 1 Custom indicator to get 95% ++ win rate trades.

I am trying to get it to 100% win rate trying all my knowledge from 15 years.
Not easy to get 100% somehow some where i get 1 loss when I back test for months.

Lets hope for the best to make it possible.
========================
I do not use far away risk to achieve small profits
50 : 1 R R
or
10 : 1 R R
========================
I use 1 : 1, 1 : 2 R R to get my 95% ++ winning traders.

If anyone have any Questions
Please ask me, I am happy to help.

I do not ask Money or Donations.

I help what ever I can and in my best knowledge.
If I will not have answer to your Question I will openly tell that I do not know the answer to your Question.

trading GBPUSD, I seem to notice price always running out from meeting up with one's entry set ups making me to want to be emotional by wanting to force trades. why is price not coming to entry set up on time?

Can you share your template then?

Waiting for coder to add filter in my custom indicator to show templates to you
Patience