Kindly share your views
If you have back tested your strategy and it’s consistent over at least 500 trades and you stick to it you are setting yourself up for success Keep it going
Arlen said:
If you have back tested your strategy and it’s consistent over at least 500 trades and you stick to it you are setting yourself up for success Keep it going
That is all you need You can’t rely on just 5 or 10 trades You need to do more for a better average
Arlen said:
If you have back tested your strategy and it’s consistent over at least 500 trades and you stick to it you are setting yourself up for success Keep it going
Thanks buddy I will
Risk to Reward doesn’t mean much It’s just your choice of win rate before edge A 1 to 1 RR gets you a 50% win rate and a 1 to 2 RR gets you 33% and so on Just looking at RR doesn’t give you an advantage or disadvantage because if it did all traders would go for a 1 to 20 RR and be rich
The important thing you missed is that you are not just flipping a coin You must get both the entry and exit right which creates a relationship between RR and win rate
@Ocean
I have a strategy that usually gives me around a 1 to 3 RR What I’m saying is you don’t need a crazy win rate to be profitable but I appreciate your thoughts
@Ocean
You’re misunderstanding
RR is part of risk structure There are many ways one can implement risk structure in trading
What you say about a higher RR target decreasing success chance isn’t exactly right
Markets trend and move in waves So being on the right side of a trend often shifts your success probabilities so targeting a 1 to 2 doesn’t mean you can only max out at 33% If you randomly click buy or sell you could easily be on the right side of a trend 50% of the time with a large enough trade sample
A 1 to 20 RR isn’t workable because of the market’s nature It doesn’t make sense to let a trade run to 1 to 5 then have it drop back It’s effectively a 1 to 3
The point about entry and exit doesn’t hold in every scenario One of the systems I trade allows flexibility with entries and exits It carries higher risk at times but I tend to have more successful trades
@Oak
I totally agree with you I’ve traded successfully for 9 years now Risk to Reward has always been critical in my approach Different traders have diverse ways to win or lose I recognize you and AceMcNasty as among the few here who really get it I manage my trades differently than McNasty but I’ve learned there’s no one way to approach this I need a stop loss for my peace of mind especially on shorter timeframes
I agree that probability is much higher when entering during a strong trend I see how simplistic people discuss this topic But you made it clear when you mentioned that RR is part of risk structure At least that’s how I see it I usually win trades with a 1 to 2 RR setup I likely wouldn’t succeed with a 1 to 20 setup I understand your point but context is important
Ramon said:
@Oak
I hope you are approaching it the right way If I’m wrong I wish you the best
My response was directed at McNasty
Ramon said:
@Oak
I hope you are approaching it the right way If I’m wrong I wish you the best
My response was directed at McNasty
Oh sorry I thought it was the same person My apologies
Be cautious I’ve heard that some platforms don’t let you risk more than 1% on funded accounts I read some reviews on Trustpilot and they mentioned you shouldn’t risk more than 1% per pair not even per trade I see some of your trades are risking more than that This is allowed during challenges but not in funded accounts
Ramon said:
@Wynn
Thanks I will remember that with funded accounts
Yes they could close your account if they think your trading strategy is too risky and there’s nothing you can do about it
I also have a 30 to 40% win rate with a 1 to 3 RR and I managed to secure 16% profit from around 46 trades
Nash said:
I also have a 30 to 40% win rate with a 1 to 3 RR and I managed to secure 16% profit from around 46 trades
That’s exactly what I’m talking about
Risk to Reward along with success rate leads to an expectancy Expectancy shows your average return per trade It doesn’t matter if it’s a win or loss It shows this over many trades Here the focus is that we don’t consider risk So stating that RR is everything isn’t correct You’re ignoring success rate in this situation Even if you weighed it like RR you’re still missing effective risk management which is crucial You can be an excellent trader with a high RR and success rate But if you bet a large amount each time you will eventually lose