The 2/1 risk/reward MYTH... - Page 5
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Thread: The 2/1 risk/reward MYTH...

  1. #41
    Terminator,

    what you're talking about is profitability. . .thats a prerequisite. . .as a retail trader, your advantage is just that you dont have to maintain the markets constantly. . .that is what enables you to extract some money

  2. #42
    Quote Originally Posted by ;
    terminator,

    what it is you're talking about is profitability. . .thats a prerequisite. . .as a retail trader, your edge is merely that you dont need to maintain the markets constantly. . .that is what enables you to extract some cash
    Being in the (FX ) market all the time or not has nothing to do with profit and edge Peter.

    Trend following systems using 2 simple moving averages by way of example are in the market all the time AND are profitable at the same time, even though they do generate massive drawdowns.

  3. #43
    Quote Originally Posted by ;
    Being in the (Currency Market ) market constantly or not has nothing to do with profit and edge Peter.
    This really is a huge advantage and can give retail traders an edge to people that always have to exhibit a bid/ask. Although, I am not sure how much it cancels out the numerous disadvantages that we've got.

  4. #44
    Hey FXTerminator

    I've been away for a little while, so I'm seeing this thread just today, but would love to give my 2p since I feel strongly about it.

    For me , attaining a 2:1 reward/risk ratio is THE key to profitability.

    During Q3 06 I tested a method which I started trading live this year. Over 100 trades throughout testing I had a very fine 67% of trades that were successful, but today since 2 Jan 07 and 80 trades I just managed 51% (though I expect this will creep around 60 percent over time). So by having a mean winner of 51 pips versus average loser of 24 pips, I've generated 600 pips per month throughout January and February.

  5. #45
    Geld,

    I do not think using a 2:1 RR is your secret for you. I believe using a system that manages a 51% gain ratio is the secret, along with your profit occurs to be dependent on your RR...

    Trust me, even if your system goes down to a 20% gain ratio (do the math). . .you WON'T be profitable. . .so it is not your RR. . .it's your statistical edge.

    Quote Originally Posted by ;
    Hey FXTerminator

    I've been out for a little while, so I'm seeing this thread just today, but would like to provide my 2p since I feel strongly about it.

    For me , achieving a 2:1 reward/risk ratio is the secret to profitability.

    Throughout Q3 06 I tested a method that I began trading live this past year. Over 100 transactions during testing I had a very nice 67 percent of successful trades, but today since 2 Jan 07 and 80 transactions I just managed 51 percent (though I hope this will creep up to 60% over time). So by with a mean winner of 51 pips versus average failure of 24 pips, I've generated 600 pips a month during February and January.

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