Hello all,
I'm building my own system and have my own opinions on things, but would like some others opinions in case my brain is running in circles. Here is the type of system I am interested in.
1. Highly reliable. Win ratio of at least 50% given the next parameter, but really I'm looking for something closer to 60%+
2. Risk/reward ratio of at least 1:1. I don't want to risk 100 pips only to make 50. Given the above parameter it might be easier to get reliability with a risk/reward ratio closer to 1:1.
That's it. How would you build a trading system around those two parameters? What would your TP/SL be? What would be your signals?
This may sound very broad, but I wonder if certain indicators are better for different trading styles. For example, are Fibonacci trading systems really meant more for long term trading systems where your win ratio may only be 33%, but when you win you win big because of risk:reward ratio of maybe 1:3 or more?
Another example is I doubt anyone is trading a currency pair fundamentally on a 1 minute chart. You can't scalp based off of fundamentals.
Funny how those two parameters sort of feed off one another where you change one and it affects the other.
So what type of system would you build around that?
I'm building my own system and have my own opinions on things, but would like some others opinions in case my brain is running in circles. Here is the type of system I am interested in.
1. Highly reliable. Win ratio of at least 50% given the next parameter, but really I'm looking for something closer to 60%+
2. Risk/reward ratio of at least 1:1. I don't want to risk 100 pips only to make 50. Given the above parameter it might be easier to get reliability with a risk/reward ratio closer to 1:1.
That's it. How would you build a trading system around those two parameters? What would your TP/SL be? What would be your signals?
This may sound very broad, but I wonder if certain indicators are better for different trading styles. For example, are Fibonacci trading systems really meant more for long term trading systems where your win ratio may only be 33%, but when you win you win big because of risk:reward ratio of maybe 1:3 or more?
Another example is I doubt anyone is trading a currency pair fundamentally on a 1 minute chart. You can't scalp based off of fundamentals.
Funny how those two parameters sort of feed off one another where you change one and it affects the other.
So what type of system would you build around that?