I Only want some opinion from Each when they Put up their pip stop/lose when trading e.g 3-10pip or prior to the previous day of the currency Exchange... thank
I Only want some opinion from Each when they Put up their pip stop/lose when trading e.g 3-10pip or prior to the previous day of the currency Exchange... thank
As for me, I discover my trades are becoming more successful the farther the stop-loss... Not as great for risk/reward ratio, but be sure you get a fantastic entry and provide a good 20 pips (30 much of the time) for almost any stop-hunting or irregular volatility.
IMHO w/o an understanding of r. Using r:r can help u screen what transaction to take. If I have two transactions. 1 w/ 1:3 r:Hybrid and 2nd in 1:1.5. All things being even I'll take the 1:3 and pass onto the 1:1.5. W/o a way of discovering r.
Originally Posted by ;
1 Attachment(s) This is how I understand and determine the r:r. Not a commerce recomendation by any way.
The below chart is your 1 Hour USD/CHF. Both yellow lines in 1.2487 and 1.2482 is my determined support zone. The yellow line in 1.2525 is your projected take profit.
When I place on a trade at the moment and buy at 1.2494 my s'l is determined by my support zone. I decide I will place a halt at 1.2482 (bottom of the zone. My risk is 12 PIPS. My TP is 1.2525 or 31 pips over my buy. (Spreads are not figured in this calc for simplifiion, though one must figure them into a true calc.)
My r:r determined by dividing my potential profit at risk:
31/12 = 2.58
So I've a 1:2.58 ratio on the commerce.
How to Have a beter r:r. Wait and buy at 1.2491. Risk is 9 PIPS adn TP is 34 PIPS. (You do not correct the risk or the TP to improve the r:r, you adjust the buy)
my r:r is improved :
34/9 = 3.78, or a 1:3.78 ratio.
If my aim is to exchange this pair then I would wait until price reaches 1.2491 as IMHO less than a 1:3 r:r is not worth trading.
How much you win or lose is undoubtedly the least important thing in trading. What matters is how much you win/lose and how often. Rratios on individual transactions imply nothing.Originally Posted by ;
Individual trades in nothing that is mean.
What I am attempting to point out is that those individuel trades accumulate. If u consistenetly accept low volatility: r trades that your agregate ratio is currently begging na be much lower than if you choose higher ratio trades.
If I own a system which generates consistent 50% winning trades I need that 50% trades to be around a 1:3 ratio profit. By taking lower r:r trades my ratio is begging t be 1:1.5 or less. My time is better spent looking for ratio trades. With the proper r:r one may have a system which generates less than 50% winners and stil be. (Proper MM is a must of course)
This is only my opinion. 1 decides their own trading procedure.
Originally Posted by ;
I don't understand why folks set up to win a fraction of the time. You can risk 3 to win 1 and still be profitable. Each one says'oh, you need to win 80 percent of the time' or anything like this. My response is,'so?' .
Originally Posted by ;
I used to exchange 1risk:1reward with a 75% success rate. I have a 1risk:3reward with a 40% success rate . My max reward if I had been right 100% of the time on a 1:1 is 10 reward /10 risked. Now I be right 50 percent of the time on a 1:3 and only could have 10 reward. I like not needing to be much. Is not that the entire point of specialized analysis; being able to identify risk in likelihood trades?Originally Posted by ;
The casino industry understands this . Sure u can risk $3 to acquire $1, but why? It takes u 4 drops to get. Unless of course you choose to risk $9 to win back your $3. If one transactions an 80 stategy w r: r and / this kind of MM and they will be hard pressed to stay even.
Originally Posted by ;