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Risk/Reward Ration-Why you should master the Act.
forex_trader_1984295
Medlem sedan Oct 22, 2020
42 inlägg
Nov 05, 2020 at 06:26
Medlem sedan Oct 22, 2020
42 inlägg
What is risk and reward ration, and why you should master the Act.
Risk/reward ratio, an estimated measure of th profit potential per amount risked. For example a trader might use a 1:4risk/reward ratio meaning that they are willing to risk $1 to mak $4. Risk and Reward ration potentially give you a hedge to have the best Money Management with huge profits returns with time with very low drawdow.
If you can truly maintain this, you will be making profits with reasonable little risk and it one of the best way to be a profitable trader as it allows you keep making profits at a better ration. First time I started managing funds 20 years ago under a firm, that was where all the emphasis of trading was focus on, once you master the Act, you are a proffesional trader.
Risk/reward ratio, an estimated measure of th profit potential per amount risked. For example a trader might use a 1:4risk/reward ratio meaning that they are willing to risk $1 to mak $4. Risk and Reward ration potentially give you a hedge to have the best Money Management with huge profits returns with time with very low drawdow.
If you can truly maintain this, you will be making profits with reasonable little risk and it one of the best way to be a profitable trader as it allows you keep making profits at a better ration. First time I started managing funds 20 years ago under a firm, that was where all the emphasis of trading was focus on, once you master the Act, you are a proffesional trader.
Medlem sedan Jul 23, 2020
869 inlägg
May 07, 2021 at 22:43
Medlem sedan Jul 23, 2020
869 inlägg
It is essential to survive in the market. After all, it is a risky market.
Medlem sedan Mar 16, 2021
477 inlägg
May 08, 2021 at 00:54
Medlem sedan Mar 16, 2021
477 inlägg
If my strategy ever fails then the risk ratio helps me in my defense. So I always maintain a 1: 2 risk ratio and trade.
Medlem sedan Mar 28, 2021
617 inlägg
May 08, 2021 at 13:19
Medlem sedan Mar 28, 2021
617 inlägg
LyudmilLukanov posted:Managing risk is the most significant yet ignored aspect in trading. I mean most of the traders don't have any risk management coverage. I don't risk more than 1 percent of my funds in one trade. If I start more than 1 trade my highest possible risk percentage is 2%.
It is essential to survive in the market. After all, it is a risky market.
Medlem sedan Jul 20, 2020
399 inlägg
May 09, 2021 at 10:25
Medlem sedan Jul 20, 2020
399 inlägg
Completely agree, it will make sure you are profitable. Its so important to have a positive RR
Medlem sedan Jul 19, 2020
751 inlägg
May 09, 2021 at 13:10
Medlem sedan Jul 19, 2020
751 inlägg
Yes finding the risk reward and winning percentage of your strategy is important. It gives you more confidence as you know more about your strategy.
Medlem sedan Jul 23, 2020
759 inlägg
Jun 04, 2021 at 14:33
Medlem sedan Jul 23, 2020
759 inlägg
It helps traders to stay in the business for long.
Aug 06, 2021 at 06:08
Medlem sedan Jun 30, 2020
90 inlägg
The correct approach is always a positive result and good income.
Oct 05, 2021 at 20:07
Medlem sedan Aug 15, 2020
8 inlägg
I actually believe that risk reward ration is the cornerstone to successful trading. It is impossible to be 100% right all the time, but even if you are 50% right, your trading may bring you decent profits.
Oct 06, 2021 at 04:49
Medlem sedan Oct 06, 2021
15 inlägg
They are quite useful in providing you a better profit in term of consistency, so it is always good to master them.
Medlem sedan Jan 22, 2021
125 inlägg
Oct 06, 2021 at 06:35
Medlem sedan Jan 22, 2021
125 inlägg
I keep my risk reward ratio to 1:5. There is no harm for getting 1000 when keeping 200 on risk.
Medlem sedan Jul 20, 2020
399 inlägg
Oct 06, 2021 at 07:06
Medlem sedan Jul 20, 2020
399 inlägg
blackChelsea posted:
I keep my risk reward ratio to 1:5. There is no harm for getting 1000 when keeping 200 on risk.
Thats the ideal i think between 1:3-1:5 but you have to have the mentality to deal with the losses as the is around a 55%-60% accuracy id say. What is yours like?
Oct 06, 2021 at 12:36
Medlem sedan Dec 13, 2018
6 inlägg
CraigMcG2020 posted:blackChelsea posted:
I keep my risk reward ratio to 1:5. There is no harm for getting 1000 when keeping 200 on risk.
Thats the ideal i think between 1:3-1:5 but you have to have the mentality to deal with the losses as the is around a 55%-60% accuracy id say. What is yours like?
With a risk reward of 1:3 and a win rate of 55% you would be a excellent trader actually, and is very hard to reach.
You can be very profitable with a RR of 1:1.5 and a win rate of 50%
I think a lot of people have a completly wrong idea of what being profitable is. It is about being consistant in the long run.
A high RR combined with a high win rate is almost impossible. And anybody who is promising these crazy high win rates with crazy high RR is probably bullshitting.
Oct 06, 2021 at 20:24
Medlem sedan Mar 05, 2021
10 inlägg
The importantce of risk/reward ration cannot be overrated. It is an open secret that it is impossible to be 100% right about the market, that is why you definetely need to hedge your risks by your profits. In this case even if only 50% of your deals are successful, you will still have profits. That is quite a simple concept but it always works.
Medlem sedan Jul 20, 2020
399 inlägg
Oct 08, 2021 at 07:10
Medlem sedan Jul 20, 2020
399 inlägg
Wiljanvh posted:CraigMcG2020 posted:blackChelsea posted:
I keep my risk reward ratio to 1:5. There is no harm for getting 1000 when keeping 200 on risk.
Thats the ideal i think between 1:3-1:5 but you have to have the mentality to deal with the losses as the is around a 55%-60% accuracy id say. What is yours like?
With a risk reward of 1:3 and a win rate of 55% you would be a excellent trader actually, and is very hard to reach.
You can be very profitable with a RR of 1:1.5 and a win rate of 50%
I think a lot of people have a completly wrong idea of what being profitable is. It is about being consistant in the long run.
A high RR combined with a high win rate is almost impossible. And anybody who is promising these crazy high win rates with crazy high RR is probably bullshitting.
Yeah completely agree. A sure fire way to know a fake guru is high accuracy and RR. 55% isnt sexy but will make you profitable
Medlem sedan Apr 09, 2019
538 inlägg
Oct 08, 2021 at 10:22
Medlem sedan Apr 09, 2019
538 inlägg
For sure. Hate seeing these promises of 95%+ accuracy as you just know it's a scam and that there are some poor saps out there that get drawn in by it.
If you can't spot the liquidity then you are the liquidity.
Medlem sedan Jun 09, 2021
44 inlägg
Oct 27, 2021 at 03:56
Medlem sedan Jun 09, 2021
44 inlägg
In order to manage the risks and save the trading capital, risk/reward ratio is vital to use. The optimal RR ratio differs widely among different strategies but a ratio of 1:3 is generally considered good for all the traders.
Medlem sedan Oct 17, 2018
103 inlägg
Oct 30, 2021 at 17:48
Medlem sedan Oct 17, 2018
103 inlägg
No trade is ever a certainty. You need to have a good RR ratio to ensure that you minimise your risk. I only risk 1-2% of my account in any one trade. I like to keep my ratio at 1:3. Without that risk management it is too easy to blow your account or make much higher losses.
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