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1:1 Risk Reward Ratio - Why it just makes sense

  • #201
  • Jun 11, 2012 12:25am Jun 11, 2012 12:25am
Quoting CindyXXXX
Fantastic... I did read that. Why not just make that your sig then you will never have to post. It could apply to all threads. All topics. All arguments.

I'm more interested in what you personally do. Do you even trade? It's no crime if you don't.
Ahh.... I thought something like that was coming. Hence the question mark after the little peace emoticon.

Anyway, nice of you to ask. At this point in time what I do or don't do is irrelevant. What pipmutt or jimmiejames79 does (atm) is also irrelevant.

What I think is that JJ79 did a pretty damn good job of arguing his point until all the "beagle boys" started to pile in because pipmutt didn't know how else to respond.

That's what I think.

Don't like it ? ?
When the Joker is in the deck.. fear not and play it well
  • #202
  • Jun 11, 2012 12:26am Jun 11, 2012 12:26am
Quoting CindyXXXX
Taking my own advice . I'm glad we had this chat
really

wow
When the Joker is in the deck.. fear not and play it well
  • #203
  • Jun 11, 2012 12:27am Jun 11, 2012 12:27am
Quoting dean
I have to say.....I am loving the use of that word f^%tard....it's a beauty!!! cracks me up
You just love riding both sides of the fence 'ay
When the Joker is in the deck.. fear not and play it well
  • #204
  • Jun 11, 2012 12:35am Jun 11, 2012 12:35am
Quoting Slim Buffett
Ahh.... I thought something like that was coming. Hence the question mark after the little peace emoticon.

Anyway, nice of you to ask. At this point in time what I do or don't do is irrelevant. What pipmutt or jimmiejames79 does (atm) is also irrelevant.

What I think is that JJ79 did a pretty damn good job of arguing his point until all the "beagle boys" started to pile in because pipmutt didn't know how else to respond.

That's what I think.

Don't like it ? ?
I'm just wondering why you are here...

At the risks of stepping off topic. Something trolls are great at doing to interesting threads (me and you right now).

I'm studying philosophy at the moment and to cut a loot of hippy BS... Basically you look at an action and to judge it's merit you excuse the individual adn make that action universal... "What would happen if EVERYONE di this action?"

Well I'm just saying Slim if everyone adopted your Philosophy on this forum from the posts you've made in this thread then I think at midnight we would all start turning into fk tards... (fk tard is the new Muppet).

So before you hit that dial with another useless comment see if for once you can stand not having the last word... I'm guessing neigh to that.
Time hides Nothing
  • #205
  • Jun 11, 2012 12:46am Jun 11, 2012 12:46am
Quoting CindyXXXX

So before you hit that dial with another useless comment see if for once you can stand not having the last word... I'm guessing neigh to that.
Think about that for a minute.
When the Joker is in the deck.. fear not and play it well
  • #206
  • Jun 11, 2012 12:48am Jun 11, 2012 12:48am
Quoting CindyXXXX
I'm just wondering why you are here...



I'm studying philosophy at the moment

.
And I thought you were a trader and I was seeking your infinite wisdom.
When the Joker is in the deck.. fear not and play it well
  • #207
  • Jun 11, 2012 12:51am Jun 11, 2012 12:51am
Quoting CindyXXXX
on universal... "What would happen if EVERYONE di this action?"

Well I'm just saying Slim if everyone adopted your Philosophy on this forum from the posts you've made in this thread then I think at midnight we would all start turning into fk tards... (fk tard is the new Muppet).
And your brilliant contribution is.................
where

Well, you DID introduce this "(fk tard is the new Muppet)"

congrats
When the Joker is in the deck.. fear not and play it well
  • #208
  • Jun 11, 2012 12:52am Jun 11, 2012 12:52am
Quoting Slim Buffett
Don't mistake them. They're mostly bitches in heat that need a little petting
Ha Ha! Yeah I figured so. Just like poodles all bark no bite!
My trades are 100% profitable 65% of the time!
  • #209
  • Jun 11, 2012 1:01am Jun 11, 2012 1:01am
Quoting Slim Buffett
And I thought you were a trader and I was seeking your infinite wisdom.
I'm whatever you make me Slimmy... That's what's so funny.
Time hides Nothing
  • #210
  • Jun 11, 2012 1:16am Jun 11, 2012 1:16am
Quoting CindyXXXX
I'm whatever you make me Slimmy... That's what's so funny.
Exactly.
And what should that be.
CindyXXX is a dude. What are you .
Cindy is so proverbial as to call me Slimmy. Are you coming on to me or trying to put me down. I'm just wondering.

btw.... I take your new signature as quite an honor. Please don't change it.
When the Joker is in the deck.. fear not and play it well
  • #211
  • Jun 11, 2012 3:49am Jun 11, 2012 3:49am
Quoting jimmyjames79

The only conceivable way to turn a profit is. LET YOUR WINNERS RIDE. Why not it's easy you just hold a little longer and the trade magically moves in your favor.

Fuck it just hold it forever.


If you have a 1:1 RR you are a total fucktard and you have been ill informed by that dip shit Jimmy.
Really, is that what you've understood from our conversation?

Ok well that certainly goes some way to explaining why you appear to be so confused ......



Quoting jimmyjames79
i take an even reward to what i was willing to risk
Quoting jimmyjames79
I personally have back tested my strategy and it's much more effective with a 1:1 R:R
Quoting jimmyjames79
Every strategy i use in both the stock market and forex is based on an even R:R.
Quoting jimmyjames79
90% of my trades are fixed with a 1:1 RR
Quoting jimmyjames79
I pre manage my trades.....I am not stuck at an even R:R





Quoting jimmyjames79
I look for a 2000% return a year.
Quoting jimmyjames79
Averaging .5 to 1 percent a day in the forex market and a little more then 1% per day in the stock market.
Quoting jimmyjames79
I do not make 6000% per year
Quoting jimmyjames79
I average 25 to 30% a month and compound daily.



Quoting jimmyjames79

When your willing to put your money where your mouth is let me know! I'm always ready.
I've already accepted your ridiculous 6 month trading challenge, like I said all you've got to do is trade and assume I'm taking the other side of all your trades and we'll meet back here in 6 months to see where we're at. Simples!

Just let me know if you need it explaining in words of one syllable....sheesh
  • #212
  • Jun 11, 2012 3:56am Jun 11, 2012 3:56am
Quoting Slim Buffett
You just love riding both sides of the fence 'ay
Its a big fence............bottom line is I like what Cindy has to say and her outlook on trading.....I trade......I am here to get other people insights into trading, not get caught up in bullshit or bravado. She was and is simply giving her views on RR and how she had to adapt her trading style to suit the current market.....I respect that.....simple.......the rest of the crap that gets thrown around in these forums gets processed through my built in bullshit filter and this thread is making it work overtime.
  • #213
  • Jun 11, 2012 3:59am Jun 11, 2012 3:59am
Quoting dean
Its a big fence............bottom line is I like what Cindy has to say and her outlook on trading.....I trade......I am here to get other people insights into trading, not get caught up in bullshit or bravado. She was and is simply giving her views on RR and how she had to adapt her trading style to suit the current market.....I respect that.....simple.......the rest of the crap that gets thrown around in these forums gets processed through my built in bullshit filter and this thread is making it work overtime.
Cindy is a dude. I know, it's weird.
  • #214
  • Jun 11, 2012 4:01am Jun 11, 2012 4:01am
Quoting dean
Its a big fence............bottom line is I like what Cindy has to say and her outlook on trading.....I trade......I am here to get other people insights into trading, not get caught up in bullshit or bravado. She was and is simply giving her views on RR and how she had to adapt her trading style to suit the current market.....I respect that.....simple.......the rest of the crap that gets thrown around in these forums gets processed through my built in bullshit filter and this thread is making it work overtime.
Only one minor detail, 'she' is actually a 'he'.......
  • #215
  • Jun 11, 2012 4:01am Jun 11, 2012 4:01am
I must clearly miss something because trading with a R&R of 1 implies pretty much the opposite of everything in my trading strategy. Maybe this is because I am a trend follower as opposed to range traders but I fail to see the benefit of limiting one's profit once you have detected a trend...

A R&R of 1 is similar to playing heads and tails, i.e. independent movements (or throws for that matter). Is that how some of you see trading?
  • #216
  • Jun 11, 2012 4:05am Jun 11, 2012 4:05am
Quoting 2+2=4ex
Cindy is a dude. I know, it's weird.
That IS weird!!...however my comment stands man or woman. Gender is irrelevant.
  • #217
  • Jun 11, 2012 4:11am Jun 11, 2012 4:11am
Quoting darko2010
I must clearly miss something because trading with a R&R of 1 implies pretty much the opposite of everything in my trading strategy. Maybe this is because I am a trend follower as opposed to range traders but I fail to see the benefit of limiting one's profit once you have detected a trend...

A R&R of 1 is similar to playing heads and tails, i.e. independent movements (or throws for that matter). Is that how some of you see trading?
Crucial part of that statement is: "everything in my trading strategy"
You havent missed a thing.....your strategy works for you and thats how it needs to be....if 1:1 works for others so be it....one is no better than the other....trading is personal and has to be adapted to your own personality so nobody should be judged on the RR they use or anything else they use in order to establish profitibalilty and a level of comfort to trade. Strategies, R;R's, money mangement all mean nothing if you dont have any emotional control or discipline....its what's in between your ears that will fuck you up most of the time....not the system, method or RR that you use.
  • #218
  • Jun 11, 2012 4:15am Jun 11, 2012 4:15am
Quoting dean

...one is no better than the other....trading is personal and has to be adapted to your own personality so nobody should be judged on the RR they use or anything else they use in order to establish profitibalilty and a level of comfort to trade.
Are you saying that anything goes as long as it makes money and is comfortable for the trader?
  • #219
  • Jun 11, 2012 4:18am Jun 11, 2012 4:18am
Quoting darko2010
I must clearly miss something because trading with a R&R of 1 implies pretty much the opposite of everything in my trading strategy. Maybe this is because I am a trend follower as opposed to range traders but I fail to see the benefit of limiting one's profit once you have detected a trend...

A R&R of 1 is similar to playing heads and tails, i.e. independent movements (or throws for that matter). Is that how some of you see trading?
An R:R of 1:1 can be profitable if you know when and where to enter. Is it more profitable than a trend following/stacking method? Maybe. It depends on whether or not price trended or ranged mostly during the time period in question. There are no right answers to the questions, "what is the best RR?" or "Is a fixed RR better than not setting a fixed RR?" The reason being no one knows where price will go.

Here's another myth... an RR of less than 1:1 cannot be profitable. Math shows it can be. The rate of winning trades would have to exponentially outnumber the loses as the RR 'worsens', but there is no golden rule that says it isn't possible. It's probably not a good idea to trade with an RR less than 1:1 because it puts less room for error on entries (since you have to win much more), but it can technically be done.
  • #220
  • Jun 11, 2012 4:24am Jun 11, 2012 4:24am
Quoting dean
Crucial part of that statement is: "everything in my trading strategy"
You havent missed a thing.....your strategy works for you and thats how it needs to be....if 1:1 works for others so be it....one is no better than the other....trading is personal and has to be adapted to your own personality so nobody should be judged on the RR they use or anything else they use in order to establish profitibalilty and a level of comfort to trade. Strategies, R;R's, money mangement all mean nothing if you dont have any...
Dean,

You are right in the sense that anyone can have their own strategy provided it works for them. However, I was under the impression that threads such as this one were used to confront views in order to help the community through individual experiences and, when necessary, disagree with certain strategies.

I am sure a pre-established R&R strategy of 1 can work, I am merely pointing out that I don't believe this is the best use of one's time and money in a market which, even if it has its chaotic moments, has a direction.

So, just to clarify, I have no opinion whatsoever on the merit of a R&R of 1 in scalping but, if you are into trend following, a R&R of 1 is clearly sub-optimal as markets generally have a direction and that assuming an even probability of ups and downs is wrong.
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