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High Reward to Risk Trading

  • #21
  • May 7, 2016 8:05am May 7, 2016 8:05am
Quoting vasily
{quote} which guy?
Explorer is of onlydragon
http://www.forexfactory.com/onlydragon
When the going gets tough , the tough get going
  • #22
  • May 7, 2016 8:07am May 7, 2016 8:07am
Quoting Stubborn
{quote} Explorer is of onlydragon http://www.forexfactory.com/onlydragon
thank you
  • #23
  • May 7, 2016 8:09am May 7, 2016 8:09am
Gold Daily Chart, some thoughts for next week.

Attached Image (click to enlarge)
Click to Enlarge Name: XAUUSDDaily.png Size: 117 KB
No guts, no glory
  • #24
  • May 7, 2016 9:15am May 7, 2016 9:15am
hi abok. First, sorry for my bad English and if this post should not be posted in this thread. I have study all your posts... and would like to know what do you think about this strategy i want to start this week:
- entry with road_runner_03 signals
- close according to LVC

I am not able to establish a correct relationship between the TF of both systems. I greatly appreciate you help me with this doubt and how you could to set this. I am convinced that good results could be achieved by joining your two magic ideas.

Thanks a lot
Learning
  • #25
  • May 7, 2016 10:05am May 7, 2016 10:05am
Very good stuff! I'm subscribed. Thank you!
  • #26
  • May 7, 2016 11:30am May 7, 2016 11:30am
No DAX 30?
  • #27
  • May 7, 2016 11:35am May 7, 2016 11:35am
This style is opposite to what most retail traders are used to (including myself). Most of us take profit quickly on the fear that we will lose it. And we leave losses increase hoping that it will come back to break even. Some people will even add to losers to recover faster (not talking here on multiple entries at a pre-specified area with unified stop loss).


If you look at the second lost trade in the GBPUSD chart, that trade reached 2:1 reward to risk before hitting stop loss. I didn't take partial profit or move SL to BE because it didn't move enough.

Such situations will occur frequently and we need to train ourselves how to handle them.


Very important here is to risk very little on each trade as we might have to endure long sequence of losses before reaching our goal.


If we aim for 2% a day, we should not risk more than 0.1% on each trade (assuming a sequence of 20 losses) ... and so on.
No guts, no glory
  • #28
  • Edited 12:20pm May 7, 2016 11:42am | Edited 12:20pm
Quoting stylinex
No DAX 30?
Hi stylinex. Good to see you here.
Actually I don't have any experience with indexes.
It would be very useful (for me at least) to learn from you on.

You are most welcome...

PS: No happy faces as I'm posting using phone.
No guts, no glory
  • #29
  • May 7, 2016 1:17pm May 7, 2016 1:17pm
Quote
Believe me, It is.

We are not smarter than the market.
High win ratio systems don't last long.
By high win ratio I mean anything above 50%.
So you are saying that any strategy that has 1:1 is going to fail as the need to win more than 50% of the trades to make profit... Believe me when a I say that you don´t need a large risk reward ratio to beat the market
Old ways dont open new doors
  • #30
  • May 8, 2016 3:47am May 8, 2016 3:47am
Quoting TornadoTradr
High reward to risk ratio isnt better or worse than low reward to risk ratio, it just depends on the strategy. My most succesful strategy uses a 1:1 and still makes a decent profit. Anyway this sounds interesting.... subscribed
Good point. Instead focusing on risk:reward, one should focus first on high win rate.
Money moves the market, not an indicator.
  • #31
  • May 8, 2016 4:03am May 8, 2016 4:03am
rather than put him down, let the thread build a history;
then if he's right, shut up.
he is trying to show an idea, show where you've helped a trader to become better.
1:1 you need 54% win rate to get ahead;
1:3 much lower:
1:5 even lower again.
so many ways to skin a cat and be profitable
  • #32
  • May 8, 2016 4:15am May 8, 2016 4:15am
Easy guys/girls ...

This is a High Rr thread.

We will return many small fishes back to the ocean and take only the big ones.

We will not fish blindly ...
We are going to find/create/experiment tools that help us locate big fishes.
No guts, no glory
  • #33
  • May 8, 2016 4:24am May 8, 2016 4:24am
if you look for high risk reward trades and be patient have a valid SL position, usually they will be profitable early on, move stops to b.e and you have a Higher win rate as you don't lose as many... (they'll be stopped at b.e at worst) and every now and then you can find a beauty trade with high reward and same risk as you usally use...
a bit like this bad boy I had on EU last week
Attached Image
  • #34
  • May 8, 2016 4:25am May 8, 2016 4:25am
Our focus will be on High Reward which can survive low win rate.
We certainly don't mind achieving that with high win rate

In fact, as we go along we will try to improve our win rate, but we will never abandon our high reward, as I see it the key for success.
No guts, no glory
  • #35
  • May 8, 2016 4:25am May 8, 2016 4:25am
Quoting abokwaik
Easy guys/girls ... This is a High Rr thread. We will return many small fishes back to the ocean and take only the big ones. We will not fish blindly ... We are going to find/create/experiment tools that help us locate big fishes.
Are you going to use a mechanical strategy, or is it going to be more like technical analysis?
Old ways dont open new doors
  • #36
  • May 8, 2016 4:26am May 8, 2016 4:26am
Quoting andoseg2
{quote} Instead focusing on risk:reward, one should focus first on high win rate.
You are wrong. High win rate doesn't necessary mean you are profitable.

You can have a 99% win rate and be a loser ... Like you can have a 1% win rate and be profitable.

Win rate is nothing without the associated risk:reward ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #37
  • May 8, 2016 4:40am May 8, 2016 4:40am
Quoting FerruFx
{quote} You are wrong. High win rate doesn't necessary mean you are profitable. You can have a 99% win rate and be a loser ... Like you can have a 1% win rate and be profitable. Win rate is nothing without the associated risk:reward ...
Couldn't agree more on this.
When the going gets tough , the tough get going
  • #38
  • May 8, 2016 4:40am May 8, 2016 4:40am
Quoting TornadoTradr
{quote} Are you going to use a mechanical strategy, or is it going to be more like technical analysis?
I tend to automate trading whenever it is possible, as I don't have the time to watch the charts.
But for this one, I couldn't find a fully mechanical strategy, although I am eager to.

I started this under interactive trading so that other traders can share their live trades using the concept, and see if we can define some technical rules to trade this automatically or semi-automatic at least.

The market is so dynamic to break any fixed rules.
So we have to be as dynamic as the market.


Maybe we can develop tools that can be setup on daily basis, based on technical levels ... etc,

But for now we will go manual with the help of few tools, and see how it goes.
No guts, no glory
  • #39
  • May 8, 2016 4:47am May 8, 2016 4:47am
Quoting abokwaik
{quote} I tend to automate trading whenever it is possible, as I don't have the time to watch the charts. But for this one, I couldn't find a fully mechanical strategy, although I am eager to. I started this under interactive trading so that other traders can share their live trades using the concept, and see if we can define some technical rules to trade this automatically or semi-automatic at least. The market is so dynamic to break any fixed rules. So we have to be as dynamic as the market. Maybe we can develop tools that can be setup on daily...
Maybe some type of breakout?
Old ways dont open new doors
  • #40
  • May 8, 2016 4:48am May 8, 2016 4:48am
Timeframe ? Intraday or swing or large tf daily and higher ?
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