Risk ratio

Aug 01, 2009 at 09:27
2,913 zobrazení
23 Replies
Elkart
forex_trader_7
Členem od Aug 01, 2009   941 příspěvků
Aug 01, 2009 at 09:27
What does that one do? Not sure i understand it.
Členem od Jul 31, 2009   1449 příspěvků
Aug 01, 2009 at 09:41
It measures the risk:reward ratio, showing you the average reward you are getting on each trade in the selected currency. So if you have a risk ratio of 1.5 in EURUSD, it means that for every 1 unit of the trade you are initiating, you're expected to get back 1.5 units.

More over, you can see from this statistic which currencies are your more profitable than others and based on that you can decide in which currencies to increase your position sizing, and which to lower, which will eventually increase your profitability.
Elkart
forex_trader_7
Členem od Aug 01, 2009   941 příspěvků
Aug 01, 2009 at 10:10
K, but those values are all positive, where i do have losing pairs. Shouldn't they go negative?
Členem od Jul 31, 2009   1449 příspěvků
Aug 01, 2009 at 10:26
We currently do not show negative risk ratios as we didn't feel it was necessary.
Ratios from 0 and up should give you a good overview of the currencies profitability.

Do you feel negative values would contribute also to the analysis?
Elkart
forex_trader_7
Členem od Aug 01, 2009   941 příspěvků
Aug 01, 2009 at 10:41
I'd be able to see what pair is the most negative at a glance, provided I can look at monthly data for example. But right now it gives eurusd with a positive value, so it looks like a low yielding pair, instead of being shown as my biggest loser.

For me being able to zoom into pairs is critical. Big nice red bar would be nice yes.
Členem od Jul 31, 2009   1449 příspěvků
Aug 01, 2009 at 10:57
Ok, added to the to-do list!

Thanks for the feedback.
Členem od Jul 31, 2009   29 příspěvků
Aug 05, 2009 at 10:39
Ok, I see you added the negative values.
It does make a difference and thank you!
If it moves up and down, and I can sell and buy it, I'll trade it!
Členem od Apr 18, 2017   718 příspěvků
Dec 07, 2017 at 11:40
Elkart posted:
What does that one do? Not sure i understand it.

I see, you got your answer already! By the way, according to me a fixed risk reward ratio is much helpful than the volatile one! This is why, I am working with the fixed one.
Členem od Aug 11, 2017   886 příspěvků
Feb 11, 2018 at 07:06
In Fx trading Mostly beginners are scared about using high leverage in Forex. It is quite right that choosing high leverage will cause the reason high loss but also can give the big profit , its overall risky to use the high leverage , my opinion is that we should use the small leverage in order to get the fruitful result from this business.
Členem od Jan 03, 2018   12 příspěvků
Feb 12, 2018 at 13:29
But if you have tiny account you are never going to make any money with a small leverage
Členem od Aug 11, 2017   886 příspěvků
Feb 25, 2018 at 06:44
I have seen many newcomers consider high leverage at many risk , if there is any risks it is completely with non-sense planning and zero risk plan , nothing to do with high leverage at all. So, before trading with high leverage we have to acquire accurate risk managing plan.
Členem od Feb 26, 2018   13 příspěvků
Feb 26, 2018 at 13:28
It is true that there needs to be a risk plan but leverage should be part of that plan
Členem od Dec 11, 2015   1487 příspěvků
Feb 27, 2018 at 15:07
Gold101 posted:
It is true that there needs to be a risk plan but leverage should be part of that plan

What kind of leverage do you use?
Členem od Aug 27, 2017   994 příspěvků
Mar 01, 2018 at 09:13
Gold101 posted:
It is true that there needs to be a risk plan but leverage should be part of that plan

Definitely it is! Leverage is very much important parameter here! In my trading, I am comfortable with the low trading leverage; now I am using 1:100.
keeping patience.......
Členem od Mar 01, 2018   13 příspěvků
Mar 02, 2018 at 09:37
Even 1:100 could be pretty high. 1:25 is ok for me
Členem od Aug 11, 2017   886 příspěvků
Mar 08, 2018 at 11:01
When I was a newcomer I used 1:100 leverage in demo and 50:1 in live , it was really comfortable for avoiding losses and risk when trading.
Členem od Mar 28, 2021   617 příspěvků
Dec 09, 2021 at 07:24
mlawson71 posted:
Gold101 posted:
It is true that there needs to be a risk plan but leverage should be part of that plan

What kind of leverage do you use?
High leverage can cause you huge losses if you don't use proper risk managing technique. I have seen various traders to lose their account as a result of unprotected trading approach with high leverage. High leverage interfaces with us to make colossal trades yet it harms us in transform way when we lose our trade. I am utilizing 300:1 leverage.
Členem od Dec 17, 2009   3 příspěvků
Apr 17 at 12:28
Where do i see the Risk Reward Ratio on myfxbook? I cant find it on the published accounts
Never Give Up
Členem od Aug 13, 2024   34 příspěvků
Sep 26 at 10:47
For the risk ratio, it’s all about comparing how much you're willing to lose on a trade to how much you aim to gain. So if you’ve got a 1:2 risk ratio, you’re risking $1 to make $2. Personally, I usually keep it around 1:2 or 1:3. Sometimes, when I’m feeling extra confident, I might push it, but man, going beyond that can get real tricky, real fast. You ever try a crazy high risk ratio and then watched the market turn? Not fun!
Členem od Feb 23, 2021   20 příspěvků
Sep 27 at 05:34
It is a way to measure how much risk you're taking compared to the potential reward in a trade. It helps you decide if a trade is worth it.

For example, if you're willing to risk $100 to potentially make $300, your risk ratio is 1:3. This means for every $1 you risk, you're aiming to make $3.

A lower ratio, like 1:1, means you risk $100 to make $100, while a higher ratio, like 1:5, means you risk $100 to make $500. Generally, traders aim for a higher risk-reward ratio to make the risk worth it.
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