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

Really there entirely relative to the thread. You need to reread the first article.

Are you responding to a previous article or something, what I said was they're invalid as in they're not based on legitimate information.

Non compounded returns Might Be the same. But compounded yields would provide the person who has the R:R a greater return.

How so? Profit is profit, compounding is compounding.

I'm making this effigy doll what do you look like! Ha Ha! JK!

Clooney lookalike

You certainly are fueling the fire. Doing a good job. When you said you're the minority, you were not kidding! Ha Ha!

Ah a few over 1 however, the minority for certain, besides I believe quality is more important than quantity since it's in trading.

And I imagine the thread would get repetitive especially when your juggling 10 posters or so!

I understand! All of them want it explaining to them!

Mind you I like the comments from w.penn and the like. I need to be doing something right, if that is all they've got to say to contradict my opinion!

What is currently, if it's not the infinitesimally little slice of time which separates the past from the future?

'Now' is the current time, it's what is really occurring in the current moment (fact) as opposed to what we predicted would happen sooner or later in the future (conjecture). Truth is obviously information on which to base conclusions or adjust previous decisions.

Anything that increases profit without further risk has become the optimum bonus!

Exactly!

The problem with discussions like this is someone starts a thread and expresses their view or attempts to give what they think is excellent information , others point out the flaws or convey a contrary view, and rather than having a reasonable debate about the merits or otherwise of an idea it descends into insanity with nothing conclusive or constructive coming from it. Lacking the power of the convictions people on both sides dismiss challenging questions, blow smoke, become abusive, or create some generic announcement or other like'it works for...

The trouble with this conversation is that for some reason unbeknown to me people have opted to challenge the idea that trading a way that yields 60-70% hit rate at 1:1 risk reward ratio is an acceptable way to trade. An 11 year old child can see anything which produces a hit rate like that with that risk to reward ratio is really a worthwhile exercise. I really fail to see why this is SUCH a challenging concept for people to swallow and some insist it's a waste of time and benefit to risk ratio approaches are the only way. My suspicion is that a lot are carrying the if I can't do it, it has to be impossible mindset and also that most of the bashers are not profitable themselves and stuck in an upset and bitter place.

Another example of what can turn a totally friendly and helpful thread into a complete waste of energy and time (in my opinion) is that participants like are much too fond of their voices and feel the overwhelming need to dare, assert and have the last word on what. And so the thread turns into a contest between the suspects who don't have experience trading the OPs method to start with. Then nuggets of helpful information are dropped these posters drag the ribbon . And that's the reason forum is full of drivel when it could be a mine of useful and solid data.

The trouble with this discussion is that for some reason unbeknown to me people have decided to challenge the thought that trading a method that yields 60-70% hit rate at 1:1 risk benefit ratio is an acceptable means to trade. In 11 year old kid can observe that anything that yields a hit rate similar to that with that risk to reward ratio is really a worthwhile exercise. I really fail to see some insist it is a waste of time and why this is SUCH a challenging concept for people to swallow and increased benefit to risk ratio approaches are the means. My suspicion is...

No the matter this is....

1. You started this thread like you had just moved to this method, then it's been 5 years of profitable trading.
2. Your 60-70% is just I'm right and that, we have no proof cause I've a hit rate. ( see ? )
3. There are ways to exchange, when you have not got enough time then fair enough, if you have not got the skill to spot your exits, fair enough, but don't be going all this is the grail, it isn't.


You alledegly possess an entrance platform that Provides you 60-70% hit rate ( why not know the exact hit rate? ) Perhaps it works for you, but it won't or it'll but they would be better off using there brain to search for exits.

No the issue here is....

1. You started this thread just like you moved to this technique it has been 5 years of profitable trading.
2. Your 60-70percent is I'm right and that, we don't have any proof to back up this cause I have a 104% strike rate. ( see ? )
3. There are far better ways to trade, if you haven't got the time then fair enough, although you haven't got the ability to spot your personal leaves, honest enough, but do not be going this is the grail, it is not.


You alledegly possess an entrance platform which gives you 60-70% strike rate ( why don't you understand...

Ok first let me say again, please learn how to read before chiming in with accusations.

1. I never said I have been trading profitably for 5 years. Actually I just got to the place of repeating profits a year ago. And yes, I have just moved to investing in a 1:1 RRR along with my profitability has improved since doing this sharing my own beliefs here it is a worthwhile exercise.

2. Yup. Like anybody else on the forum, all anyone has to go on is a person's word. We're not going to bill logins to our live accounts or our bank accounts to prove anything. And the point you're missing here is it does not matter who's account is in what level of percentage growth or yada yada yada, the aim of this entire thread was to express a benefit of a risk reward ratio which enhances my trading method tremendously and I thought others could benefit from looking or thinking about it too.

3. Yep. I am convinced there are tremendously greater ways to trade. However, why should I care when things are going? When something works, why fix it?

4. The hit rate is different depending on the number of months, weeks, days or even years that the average is taken from. Hopefully you can know how that functions. And hopefully you will read all this more carefully than before so you do not have to go making nonsense up and fully misquoting me.

Let me just say. The reason why the hit rate is high is because of the RRR that is neutral. Change into respond or a 1:2 to what the market is currently offering program and the method fails.

I would not try this on a 4hr interval with big ceases and TPs on this pair in this economic climate. I would not trade breakouts and price action on a M1 chart.

I want to just say once again. The reason why the hit rate is reasonably high is because of the RRR. Change to a 1:2 or respond to what the market is offering the method and program fails.

So your better off keeping it easy in short and just waiting for viewing, that works for you good, that will ofcourse work for many others but I have seen others attempt it for ages and because of there entrance method or lack thereof not do the job for them.

So what is working is your entrance method, your R:R being 1:1 is not that applicable, its just the simple part to discuss.

Do you feel like sharing your entrance method?? Exactly what SL and TP dimensions you use ( may of missed it don't read all posts )

The Mutt will strangely grow on you, yes he's a pain in the arse reminds me of well me strangely, your both right and wrong at the same time.

You can't argue over an opinion, yours is 1:1 his and mine is not fixed.


So if it works for you, be happy and don't feed the trolls.

So your better off keeping it easy in short and waiting for seeing, which works for you good, which will ofcourse work for others but I have seen others attempt it for ages and because of there entrance method or absence thereof not work for them.

So what's working is your entrance method, your Rbeing 1:1 isn't that relevant, its only the easy part to discuss.

Do you feel like sharing your entrance method?? Exactly what SL and TP dimensions you use ( might of missed it do not read all posts )

The Mutt will strangely increase on you, yes he's a pain in the arse informs...

Thanks Turveyd for it. It seems I've been feeding some trolls.

Yes the entrance method is of course giving me good signs but I must stress that without a 1:1 RRR I really don't think I could put it to work. It is the combo of both which works. I did attempt to describe my method, submitting my calls before the truth and even offered to do a bit of live training trading to explain in realtime but there was a shortage of interest. However, this thread isn't for this, it was only to discuss the RRR and open some minds to ideas that aren't exactly like most of retailers'teach' and rant about.

I promised myself I wouldn't get dragged in but now its too late

1:1R is a perfectly legitimate way to exchange. And I commerce similar ratios the majority of the moment. My edge is based around market microstructure inefficiencies and this is all my edge provides me. I have tried in the past to use my edge to effectively enter the market'risk free' the results are mixed and physiologically tough to manage. Of course once in a while you can combine this in with inefficiencies and'go for the jugular' I digress. .

Risk of ruin tells us we can risk more on higher win rates. R ratios give us winrate. There's a lot of attention on trades. One needs to step back and take a look at the image. Monte Carlo simulations are an perfect method of showing this off to good effect and I invite anybody who doubts the effectiveness of a 1:1 R commerce'platform' to get one of those many Monte Carlo spreadsheets which are on this forum and the net and try plugging in the numbers yourself - you may be amazed.

If you have a 70% win rate at 1:1R then you shouldn't have any troubles risking 10% per transaction. Lower the win rate and boost the Rwith this type of risk and the drawdown will be puke inducing.

On a negative note no one knows what their winrate is. It is a naive man that merely divides his transactions by his transactions to receive his win rate. Any body who has done maths at school will understand that unless you have a reasonably large sample (I'm talking 100's of transactions here) your margin for error can be non trivial. This goes back to what I said before. Focus on transactions - take a step back - it can be an eye opener!! - Do you lie in bed at night wondering if you are a profitable trader or just lucky? - I really do. . Never presume or take anything for granted.

I will crawl back to my hole now...

Thank You for that. Yes it appears I've been feeding some trolls.

Yes the entrance technique is of course giving me good signals but I have to stress that with no 1:1 RRR I really don't think I could put it to work. It's the combo of the two which works well. I did try to explain my whole method, posting my calls before the fact and even offered to do a bit of webinar trading to explain in realtime but there was a shortage of attention. But this thread isn't for this, it was just to talk about the RRR and open some minds to...

I receive @70% win rate with my method, I have a exit method most of the time it gets me out fairly near the top, just the top is often not far from my entrance, every 2 ordinary tiny profits pays for a SL and keeps me in the game efficiently.

If I was to perform a 1:1 it'd need to be like 10pips if less, or my win rate would drastically fall off.

It's the big wins, where I journey 100pip moves so 5:1 that get me the rest of the trades are are just dipping my toe in and pulling out fast if it's not perfect.