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1:1 Risk Reward Ratio

  • #41
  • Edited 6:28am May 31, 2017 6:02am | Edited 6:28am
Quoting Grabowski
Having a higher RR, say 3:1 normally gets you a winrate of 30%. {image}
Trading is not linear maths!
The zig-zag can hit much more than 30-33% SLs on a 1:3 RR setup (as the mathematic probability shows it should)
...if it would be just linear maths, it would be toooo fkn simple and we would be all millionaires
Member
  • #42
  • Edited 6:27am May 31, 2017 6:16am | Edited 6:27am
2: 1 is good enough

Attached Image (click to enlarge)
Click to Enlarge Name: 2 = 1.jpg Size: 77 KB
  • #43
  • May 31, 2017 6:29am May 31, 2017 6:29am
Quoting shireenk57
2: 1 is good enough {image}
...so help you God, shireenk57!

The truth is ...as I was chatting right now with a friend of mine..:

"The market is totally random. There is no solution for randomness
Don't think you will "feel" the market when you will have enough experience ...is impossible. You will have a temporary success then failure will come again.
Don't try to "read" charts!
The only thing you can do is to master a money management scheme.
Is what I do."

Sorry if it sounds disappointing."
Member
  • #44
  • May 31, 2017 9:51am May 31, 2017 9:51am
Quoting TudorIoan
{quote} Trading is not linear maths! The zig-zag can hit much more than 30-33% SLs on a 1:3 RR setup (as the mathematic probability shows it should) ...if it would be just linear maths, it would be toooo fkn simple and we would be all millionaires
The Zig-zag?
One more thing, running through a monte-carlo of say 100 trades and taking 1% risk on each trade, 30% winrate, you can still end up with a loss. My point is that the frequency of trades might also play a role in your "edge"
  • #45
  • May 31, 2017 10:20am May 31, 2017 10:20am
Quoting Grabowski
{quote} The Zig-zag? One more thing, running through a monte-carlo of say 100 trades and taking 1% risk on each trade, 30% winrate, you can still end up with a loss. My point is that the frequency of trades might also play a role in your "edge"
The swing's behaviour decides the rate of success, no matter RR ratio....
... trading is no plain statistics ... frequency is irrelevant, too tired to explain ...next time
GL!
Member
  • #46
  • May 31, 2017 10:24am May 31, 2017 10:24am
http://www.equitycurvesimulator.com/index.html?lang=de
Cut short your losses. Let your profits run on. David Ricardo (1772-1823)
  • #47
  • Jun 14, 2017 3:35am Jun 14, 2017 3:35am
In my beginning stage of trading, I used low risk reward ratio such as 1:1. But now I am restricted on it! Yes, now my minimum risk reward ratio is 1:2! Quality is much important than quantity to me! The main advantage of using higher risk reward ratio is, it helps to recover losing trades so quickly!
  • #49
  • Mar 21, 2019 7:36am Mar 21, 2019 7:36am
1.- a true "edge" its nothing more that a temporal "unbalance" in the price.. and its in that precise point where there its a huge % of posibility that the price WILL move in a SINGLE direction.. and YES it can be found, its consistent and can be exploited consistently

2.- FIXED R:R ITS PLAIN STUPID !!! why? because even with a true "edge" you never know for sure how much the price its going to move in your favor !!! what you only know its that it WILL move in your favor but not for how long.. You can try and do all kinf of "analisys" to guess where it could end that move BUT are you willing to give back profit and risk the whole of it (in the worst case scenario) just because its not quite there to your R:R rule??

NO AMOUNT OF "MONEY MANAGEMENT" WILL COVER THE FACT THAT YOU ARE NOT USING A REAL EDGE IN YOUR TRADES.. YOU ARE JUST USING "MM" AS A CRUTCH to try and overcome that missing piece in your trades

once you have that then you can EXPLOIT the "money management" aspect in your favor !!
  • #51
  • Jun 2, 2020 9:01pm Jun 2, 2020 9:01pm
Quoting alphaomega
{quote} Well, yes there is always risk to blow the account no matter the strategy! But considering the fact that over 90% of traders are going to lose their account anyway..... Assuming that for most traders at some point in the future the big drawdown is inevitable (regardless of the reason), then which proposition is better? a) To trade with strategy which gives you the chance to withdraw profits almost every day. And you also have the chance to multiply the account several times. b) To trade with strategy which doesn't give you any chance to...
I would like to know if you're still being profitable and what strategy are you using at the moment, if you could share, because im kinda struggling. Thanks.
  • #52
  • Last Post: Dec 19, 2020 11:16am Dec 19, 2020 11:16am
do you have risk reward ratio indicator

The Risk Reward Ratio Indicator For MT4 is an indicator that is built for the traders that use the Meta Trader 4 charting platform in their day to day charting, technical analysis and trade decision making. The Risk Reward Ratio Indicator For MT4 uses three horizontal lines. These horizontal lines can be used by the trader to immediately tell the indicator where their stop-loss and take-profits will be on any trade.
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