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Magic 100

  • #2,761
  • Aug 16, 2025 8:40am Aug 16, 2025 8:40am
Quoting hitstopagain
I'm trading the OG system as explained in the first post, with a 1:2 RR.

Thanks. Do you mind if I ask what made you choose an R:R of 1:2, please?

I’m interested in trying the system but can’t decide on what R:R to try, or even on which to test.

I notice the OP recommended 1:3 and some of the members posting here are clearly using that, while others who appear experienced and knowledgeable to me (both here and elsewhere, where I first heard about this system) are recommending a maximum of 1:1. So it’s naturally puzzling. Can anyone offer any input on this question, please?
  • #2,762
  • Aug 18, 2025 11:12am Aug 18, 2025 11:12am
Quoting Scheherazade
Can anyone offer any input on this question, please?

My "input" (such as it is) relates only to the general principle, not to this specific thread or system.

I've never seen or heard of any retail/independent trader making steady profits with an R anywhere near 3.0.

All the "profitability claims" of even 2.0+ I've ever seen have been in beginners' forums, on Youtube, on sales pages, in marketing emails and on vendors' websites, and all unevidenced.

I believe that in institutional and professional trading worlds, an R of around 1.0 or even slightly less is very common.

Someone I know who used to work for a large CFD broker told me that they had never seen a profitable retail trader with an R as high as 2.0 and were automatically and happily the counterparty to such traders, assuming 100% of them would be losers.

Back in the days when the big prop firm "MFF" published regular reports, they said that while the average R of people taking their combines/challenges was just over 2.0, the average R of the minority actually passing them was about 1.1 or 1.2

For me, all this information points in one direction only.
Victoria Chenevix
  • #2,763
  • Aug 18, 2025 2:49pm Aug 18, 2025 2:49pm
Quoting Victoria.C
{quote} My "input" (such as it is) relates only to the general principle, not to this specific thread or system. I've never seen or heard of any retail/independent trader making steady profits with an R anywhere near 3.0. All the "profitability claims" of even 2.0+ I've ever seen have been in beginners' forums, on Youtube, on sales pages, in marketing emails and on vendors' websites, and all unevidenced. I believe that in institutional and professional trading worlds, an R of around 1.0 or even slightly less is very common. Someone I know who used...
Interesting post.
When I backtest systems, it is typically that best R will be more than 2. The thing is, I don't believe in the automatic backtest, so it cannot be trusted.

Personally I use RRW at 1:1 on entry, but if things are going well, then I am trailing and often get a better reward. So RRW will be 1:+1

A great plus at using 1:1 is, that you have a better winrate and that gives a greater belief in what you are doing.
MetaTrader 4 - so many advantages.
  • #2,764
  • Aug 19, 2025 7:08am Aug 19, 2025 7:08am
Quoting RiskFighter
A great plus at using 1:1 is, that you have a better winrate and that gives a greater belief in what you are doing.
I think it's a very big and important point, and many people don't quite appreciate it.

Quoting Victoria.C
All the "profitability claims" of even 2.0+ I've ever seen have been in beginners' forums, on Youtube, on sales pages, in marketing emails and on vendors' websites, and all unevidenced.
It's much easier for people to make money by selling goods, services, "information", advice to non-profitable forex traders than by trading.

Long term success rates among retail traders are very low.

This is a self-perpetuating and self-reinforcing situation and results in most people "learning" from misinformation.

I was told firmly and clearly by a couple of former hedge fund traders, professionals, never to use an R:R above 1:1 unless letting the last little proportion run further after closing most of a position in profit. (I don't still do even that anyway, because I scalp now with a normal sort of scalping fixed R:R, and not even looking for runners. Once you have a low-R, high-win-rate method, runners are far less attractive!).
  • #2,765
  • Aug 19, 2025 8:43am Aug 19, 2025 8:43am
Thanks for these helpful comments above. (Sorry, I can't click the "like" button).

So, I will try this out with a 1:1 R:R. This was my inclination, anyway. I'll report back later how I'm getting on with it, when I have some numbers to report.
  • #2,766
  • Sep 17, 2025 12:03pm Sep 17, 2025 12:03pm
Quoting Scheherazade
I was wondering: are the people trading this system still using it with a 1:3 risk/reward as recommended on the first page
The ones trading it successfully (and most of the rest will surely have given up on it?) certainly aren't anyway. Which must tell you what you need to know?
  • #2,767
  • Nov 13, 2025 7:09am Nov 13, 2025 7:09am
GBPUSD H1
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  • #2,768
  • Edited 10:28pm Apr 5, 2026 10:11pm | Edited 10:28pm
BRING this thread back to life
long usdcad @1.3919
+20 pips so far
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  • #2,769
  • Apr 7, 2026 11:51pm Apr 7, 2026 11:51pm
It would be great to build a scanner based on this strategy. We just need to choose precise criteria so we can accurately identify entry points and trigger alerts. Anyone have any ideas?
  • #2,770
  • Apr 19, 2026 2:40pm Apr 19, 2026 2:40pm
Quoting havenoidea
BRING this thread back to life long usdcad @1.3919 +20 pips so far {image}
Hi, I intend to start trading with this strategy and follow it to the letter, keeping it as basic as possible and only as Minotaur explained at the beginning.
I have no idea—do you trade this strategy with real money? Would you recommend it? Could you help me do it correctly?
Sorry, I'm from Spain, and the conversation might be difficult here.
  • #2,771
  • Last Post: Apr 19, 2026 6:59pm Apr 19, 2026 6:59pm
Quoting Skyrider60
It would be great to build a scanner based on this strategy. We just need to choose precise criteria so we can accurately identify entry points and trigger alerts. Anyone have any ideas?
It wouldn't be easy as it has a subjective component to it. But.... perhaps the retrace candle coinciding with a touch of a lower time frame / lower period moving average. See attached
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