Risk reward issue

May 26, 2015 at 22:48
651 व्यू
4 Replies
तबसे मेंबर है Sep 16, 2014   59 पोस्टों
May 26, 2015 at 22:48
I have a strategy, which needs modification. With 3:1 and trailing stop management i think the win rate is around 30 percent. if its 1:1 risk reward, there will be less drawdowns and around 70 percent winning rate. Which do you think is better guys? Please help me!
तबसे मेंबर है Nov 12, 2012   7 पोस्टों
May 27, 2015 at 10:10
If I were you, I won't worry about this fixed thing. Take care of the downside, everything will take care itself. What it means, decide how less you want to lose on every trade and trail stop to logical points as trade progress in your favor. Believe me market will reward appropriately based on your system effectiveness. Of course this distribution will be random, sometimes you end up making 1:1 other times 1:10 r more but key thing is you have to keep it very consistent. In the end you will make much more than this fixed thing. This is just based on my experience and might r might not work for you.
Our objective in the market is not to be just right but to make a killing when we are right.
तबसे मेंबर है Sep 16, 2014   59 पोस्टों
May 27, 2015 at 10:38
The reason on why i am not going for the 1 to 1 return is because i have actually manually tested the systems and found out that it's more profitable with 1:3 risk reward system managed with price action retracement and hedging. What i found out is that most of the time, some trades that could have took profit at 1:1 might possibly run into risk reward of 1:2 or even greater. When the trades gets to 1:1 risk reward, i will manage it with price action which means i could closed it with little profit or slight loss instead of full SL. But when the trades do run, with a trade risk of 3 percent and 2 trades a day. It means that i can get 18 percent on one day which i have before several times.
तबसे मेंबर है Sep 16, 2014   59 पोस्टों
May 27, 2015 at 10:43
What do you think mate? I have gained more than 40 percent last month. This month, i am currently at 12 percent drawdown due to a mistake i made last week with my consolidation lines. I missed out on 2 potential 18 percent gains.
तबसे मेंबर है Apr 28, 2015   19 पोस्टों
May 28, 2015 at 11:50
sizhouren posted:
What do you think mate? I have gained more than 40 percent last month. This month, i am currently at 12 percent drawdown due to a mistake i made last week with my consolidation lines. I missed out on 2 potential 18 percent gains.

LOL ! nothing is guaranteed.
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