JohnnyForex
Member
You know full well what his offsite activities were, why Mr. Marcus outed him and why he fled with his tail between his legs.
Intriguing.
You know full well what his offsite activities were, why Mr. Marcus outed him and why he fled with his tail between his legs.
Risk reward is important for me because I have targets in the market. If stop/target is less than 3 then I won't take the trade in the first place. Obviously, trades won't always work that way,. but picking 1:1 trades will simply erode my edge down to nothing.
This is good stuff. Too many traders base their trade management on the performance indicators they aspire to, rather than the inherent structures of the strategy.Big edges are hard to find.
Better to have a small trading edge that can be executed frequently.
$100k account
Risk:Reward 1:1
Win rate: 55%
50 Trades per month
2% Risk per trade
27.5 Winners = $55000
22.5 Loser= -$45000
Net monthly gain = $10000 ie 10%.
Aiming for 2:1R 3:1R 5:R will not only take a long time to collect data, but also leads to risk of ditching strategy before law of large numbers can play out.
No matter where you are in the trade, there is around just as much chance of price moving 1R for you as against you.
So 'letting your winners run' is a flawed way of thinking. Find out where there is slight skew eg momentum, pullback. Then execute, execute, execute.
Thanks. I struggled over the years. I noticed that the more I try, the tougher trading becomes. Then I simplified what profitable trading is (to me). It's about having a very small edge, consistent repetition and no short term expectations.This is good stuff. Too many traders base their trade management on the performance indicators they aspire to, rather than the inherent structures of the strategy.
We get it, advertisements are annoying!
But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.