I recently had a conversation with a trader who told me he was profitable!
He told me a little about his trading system that he has been using for the past 4-5 years and basically is is trading in the direction of the trend on a daily. He is about 80% accurate with his call allegedly, but here is the interesting part...
He has a negative risk reward ratio, so he may have a 200 pip stop but be happy to take 100-150 pips profit.
Now this got me thinking... can that be right? I mean if you can get a better strike rate then you can risk more right? not load but a little more...
I have read some of the threads here on the forex factory about risk reward but was hoping for other opinions..
I am thinking that if I begin my trading in the new year with a relativlely relaxed profit taking strategy then I can let price take me out rather than a number... alot of the times this will be less than 1:1....
What do you all think? Has anyone had experience dropping their risk reward ratio and being happy with the results?
He told me a little about his trading system that he has been using for the past 4-5 years and basically is is trading in the direction of the trend on a daily. He is about 80% accurate with his call allegedly, but here is the interesting part...
He has a negative risk reward ratio, so he may have a 200 pip stop but be happy to take 100-150 pips profit.
Now this got me thinking... can that be right? I mean if you can get a better strike rate then you can risk more right? not load but a little more...
I have read some of the threads here on the forex factory about risk reward but was hoping for other opinions..
I am thinking that if I begin my trading in the new year with a relativlely relaxed profit taking strategy then I can let price take me out rather than a number... alot of the times this will be less than 1:1....
What do you all think? Has anyone had experience dropping their risk reward ratio and being happy with the results?