thread: 1:1 Risk Reward Ratio - Why it just makes sense

I manage my trades. I grapple and physically manage also. I'm not stuck in an even RI just originally egize around
an even R:R

So after all that back and forth you're not even having a fixed 1:1

It is illogical not to take unknown future profits.

Huh?

You clearly have a superiority complex. If you can not do 2000 percent annually nobody can. Right

Thanks for your investigation Doc, is where you start making personal remarks and insults?

As for 6,000% return pa I have no idea whether anybody can get it done or not, I have never seen sustainable returns like that until I do I can only assume they're unachievable. Mind you I have not met any multi billionaire forex traders....yet! Are you going to be the first?

I don't rule out possibilities another sign that your glass is half empty.

I don't believe in Santa or the Tooth Fairy either, I figure I am just a born sceptic huh.

Additionally your incorrect about the compounding procedure no matter how much you want to tweek the initial conversation so stop trying to manipulate your replies.

My replies addressed the question about compounding, realised and unrealised profit, and equity. Consider it for some time and maybe you'll understand, it's only a math calculation. Or don't....

If you try to maximize your profits and the transaction turns against you. You eliminate both time and cash. In a traders instance time is money.

Have you never heard of locking in profit? Adjusting stops? Reducing exposure?

Come on, don't get ridiculous now, we have had a reasonable discussion this way but I believe we're quickly approaching the point where everything gets a bit shaky, let's not go there, eh

To elaborate! Lets say you have an x quantity of money at a haul that is long. The trade ends up working for you. You internet 600 pips holding the trade. I trade the identical quantity of capital and I trade exactly the identical move. Except I exit and short buy so forth and long. Basically trading the fractals of the whole move. I possess the ability to web pips together with my account trading fractals as part of your account is stuck through the ups and downs. So yeah you are able to use accessible margin and trade short term along with your long-term capital but your account is in a dis advatage as far as optimizing possible through the compounding process

Does this make sense!

I didn't say this is simpler. I really don't search for the trend I search during the fashion for fractals that are likely. We are still in precisely the same trade I only exit and reenter with the entirety of my account with risk measures.

Can this make sense!

No, not actually. Are you saying you use all of your equity as margin? If yes then your risk is suicide and you are only using a percentage then what is to prevent me doing the same? I am trading the long-term trend as well as the short word'fractals'. So in your case I am getting 600 pips plus the trades as you which is just another ~600 pips. In your example we using the exact same margin exactly the same transaction size. Who ends up with much more profit?

It is a small pointless hypothetical tho' and is straying off the first point somewhat.

I did not say that this is simpler. I don't look for the complete trend I look for fractals that are probable throughout the fashion. We are still in precisely the exact same trade I exit and reenter with the entirety of my account with risk measures.

So what would you do if let's say you see a wonderful trend growing? You are not looking for it but there it is, jumping right out of this chart at you. Ignore it and carry on trading items of it? If yes, why?

Pip mutt

90% of my transactions are fixed using a 1:1 RR. I do intervene before news reports and a technical reversals. I used to take less profit then risk.

I don't make 6000% annually never claimed to. I average 25 to 30 per cent a month and compound daily. I should have said the daily stats were based on the last three months of trading. When I began to stat as it is track. Last month I had a return. Puts against a few stocks at the start of may.

You insulted me just the same. Laughing I have shown is a insult.

So Far as the maximizing profits remark. I was insinuating that attempting to optimize profits can work against you. You manage your transactions so that is your wheel home. I should of left that one out.

Anyhow if you look at my history. I try to treat people with respect and do not run many disagreements which are not solved in a way that is fantastic. This has become the debate we've ever had.

So yeah will not be childish. You exchange by ear I systems commerce with minimal intervention. They are two different procedures of trading. So we are attempting to compare apples to oranges.

I'm not stuck at an even RI simply initially egize about
an even R:R

90% of my transactions are mended with a 1:1 RR

Averaging.5 to 1 percent a day in the Currency Market market and a bit more then 1% per day in the stock market.

I average 25 to 30% a month and compound daily.

So we are trying to compare apples to oranges.

Apples, oranges, fairy dust....

However you slice and dice it the bottom line is allowing profits to conduct makes more fiscal and more logical sense than cutting profits short.

This discussion is becoming somewhat disjointed, or maybe it's just you don't need to answer major questions?

And yet another person might believe they made a smart move by remaining in the commerce and exploiting the market for what it offers, why cut profits (brief ) minus the market giving a valid reason?




So do I, and that is why I feel the collapse stats are so large, the vast majority believe that finding a tool to forecast direction accurately is essential to profitability.

I truly fail to see the worth of statistically analysing a systems historic performance when no 2 trades are ever the same. If someone needs those amounts as a crutch to...

My response to that is becasue most traders use backtesting or background to give them confidence in their system because most sytems or approaches rely solely on chance....so in case you have backtested the system you know that it works a specific proportion of the time and you can also work on your own drawdowns, SL's and TP's etc to fine tune it. Please dont think I am being critical. . .in fact your article has me extremely curious as to what gives you the confidence to trade your method in case you havent backtested?? or tested it I ask becaseu I've tried this and failed badly....so the answer for me is backtesting and also for others also....so what is it you do to get that confiedence to enter a trade??

Pip mutt

It's you that doesn't understand. On allowing winners ride winners ride winners ride, You're fixed. It is only wise to let winners ride. It is a no brainer to let winners ride and over again.

I will open a demo account with a lopsided R:R. I will risk 2% to gain 1 percent.

You open up one along with your let winners ride and lets see that returns more in 6 months.

Risk has to be the same per transaction. That's It. 2% risk per transaction good.

I can trade any R:R and have comparable results any way. You seem to have one ability. What was it. Oh yeah let winners ride.

This shall be entertaining for all the viewers of this never ending debate.

okay, I just wanted to know it clearly. I don't think it would be strange that you make suggestions according to you, squandering potential, in other words; leaving pips on the dining table.

I will be the first to admit this could be a revelation for some folks. But would you agree with me to go after that possible that is extra, someone people could be forced with that do more harm than good and to step from their comfort zone?

It happened to me and that I can say that; it is not only where you want to go, but it is also...

THe single largest mistake anyone could make here would be to take another persons information on how best to trade. NOt only are here just faceless people you know nothing about, but they have no clue as to your own trading personality and your own pain tolerance among many other factors....if you or anybody else for that thing uses a system or method which you're comfortable with and which makes your trading equally profitable and worry free....who cares if anybody else thinks you're limiting your possible....its entirely irrelevant....trading is all about finding a profitable procedure to match YOU....and YOU only. IF thats what you have found....sensational....work on refining your own method to increase profitability or anything....it sounds like to me you have done fairly well so far....keep it up. Its important to bear in mind that you're communiing by means of a forum full of anything from brand new traders, sheister salesmen, old hand succesful traders, to muppets who use them to stir up problem together with a multitude of other personalities....one thing you can rest assured that these forums shouldn't be used for....is accepting trading information directly from someone who you dont know. Fantastic luck to you.

....so the response for me is backtesting and for others too....so what is it that you do to get that confiedence to enter a trade??

Backtesting....pretty meaningless in the scheme of things. Trades are unique, markets vary are identical.

What makes me the confidence? Focussing on'trading' rather than rely on backtest results and makes me money that is theoretical.

THe single biggest mistake anyone could make here is to take the following persons advice about the best way best to trade. NOt only are here just faceless people you know nothing about, but they have zero clue regarding your trading personality and your pain tolerance amongst many different variables....if you or anyone else for that thing utilizes a system or method that you are familiar with and which makes your trading both profitable and worry free....who cares whether anyone else thinks you are limiting your possible....its entirely irrelevant....trading is all about discovering...

LOL...I like this..Give advice and then move to say dont take my advice...

Just sayin. .



BTW my moneys on Mutts.