So is that this comment.
 |
 |
So is that this comment.
Using a fixed SL and TP and no need to change to accommodate. Then the larger the quantity the longer your in and the longer your open to randomness and news events, the cause of entry 2 hours down the point is probably no more valid it probably did not reach 100 pips up or down so then your only holding and hoping and most of us know expect does not do the job.
When you reach 1000 SL TP area in case the market has a long term direction you can probably do much better as pseudo randomness probably won't stop you out but talking 6 month retains here.
SL like I exchange the main reason for entrance times becomes immaterial and it becomes a wait and see game.
That's is why everyone is H4 mad M1 is to reside, you make a mistake odds are you lose the transaction and can do that many times in a row repeating the specific same mistake out of fruion. H4 with bigger TP SL becomes closer and closer a 50/50 game it is secure but for a small account holder you will never truly get anywhere that's where the max 12% per year comes from, that's a good year to get a proper H4 only swing trader.
Which with a million account Ofcourse is just good for me 36 a year just will not cut it.
According to by someone who can't spell'you are', this made me laugh. No offence, it just made me grin
It's a shame you don't understand some fundamental concepts of mathmatics before you start making statements like 1:1 is rather stupid.
My 100TP 100SL example at the beginning of this thread was simply to describe the mathmatics more readily. But it appears that has been missing on some. I actually use this to some process, targeting 10 pips per trade, risking exactly the same as I profit and the process has a greater than 50% success rate. I've been scalping the timeframe 5 days per week, full time, for just under 5 decades and been employing a method with 1:1 RR and hit rate as opposed to a 1:2 with low hit rate for the past 6 months. This thread was made to remind folks of the advantages of utilizing a 1:1 RR instead of the ranted and raved about 1:2 or even higher. For people who prefer a greater hit rate because it allow them to take more transactions and keep concentrated, this method can be for you. Remember that the RR is not the method , it's part of it. It only works when used inside a method which permits a high hit rate, along with the RR is part of a high hit rate is possible. A 1:10 RR will not allow a higher hit rate.
What is stupid about a 1:1 RR applied to your system which gets a 60-70% hit rate? Is making money stupid to you? Do you not understand how risk reward ratios relate to win/loss ratios? It feels like you don't. And if this is the case, you're going to need to return to basics prior to a career in trading is going to be a possibility.
My 2c, FWIW:
Agree that simply because one trader can't get an indior or line study to function profitably for him, it does not imply that nobody else can use it successfully. Unless one has knowledge, it is impossible to state egorically a specific instrument can not possibly do the job.
Ultimately it is how one uses the available tools, interprets the market, and puts all of the pieces of the methodology together. There are many streets that can potentially lead to Rome (and even more that don't). Following a trader discovers out a methodology that is employed profitably for himthere's little incentive for him to keep on investigating elsewhere his attention tends to narrow, and he will become dismissive of other thoughts.
However, I do not feel that any method might work profitably simply because the trader receives his plogical demons sprinkled. EAs trade with area, but not every EA is extended term profitable.
That's not to say that subject is not crucial. To what extent ill-discipline prevents a trader out of executing his egy always, the egy becomes worthless.
IMO it is important to understand the difference between procedure and MM. Method (entries and exits) can deliver an advantage, but MM only re-balances return and risk, and/or redistributes losses and wins. MM applies to trading as it does to other games of chance, and therefore is pure math. As the punter needs a gameplay-based border (like counting cards in Blackjack) to beat the casino, the trader needs a methodological edge (entries and exits) to beat the market.
Martingale, hedging, scaling in/out, etc are MM variants that are, in themselves, impotent. People today state that Martingale operates #8212; of course it does, because the in-built recovery system is intended to ensure that each and every pair of transactions eventually returns to break even #8212; before the situation takes place when the position sizes escalate to the point that a margin call occurs. A number of the Martingales can deliver profit prior to the' death sequence' occurs, for many months, even years. Every Martingale is only one that hasn't yet struck this particular sequence.
Fantastic conversation of subject,
ive been considering this r/r ratio .ive thought about how it would effect my trading style,and for me personally it could be unwise.my strategy is as descresionary as you can get,I rely on the flexibility to close trades anywere from -pips to large pips,my stops are generally fixed but also need to adapt to my entries.
This flexibility entire provides me a reasonble positive average.if I incorperated a set take profit at 1;1 r/r my strategy would rely upon luck.
Now im not condeming 1;1 r/r methods,but with trading being this type of unpredictable journey of price to its stationary points,I find it difficult to see how using this type of controled component within an somwhat chaotic arrangement long term it must be tough to win.not sugesting it cant,but this ilies how both sides of the coin find it really hard to except the opposing traders views.
Im sure most when entering a given trade have some thought as to were they'd like to concider taking some profit.which could sugest a fixed veiw,but I for one appearance for entrance to atleast expect to gain considerably greater than 1;1 ).
Now on the otherside of the cion,a trader who has carved out a strategy with the corect hit rate to make 1;1 r/r work,cant adjust his goal articles as this altimatly would efect the general result.
Simply thinking aloud with this one
That might mean you'd have no advantage in receiving the direction correct, in which case you shouldn't be trading yet at all. As many here seem to be ignoring (or simply missing), you have to get a border before you even look at any kind of RR ratio. I think a few in this thread are forgetting that. However, I agree with some of your things .
What's better: A 1:2 Risk Reward Ratio applied to a system which has a 35% hit rate or a 1:1 Risk Reward Ratio applied to a system which has a 70% hit rate? The solution is neither. They yield the same profit.
Yes point taken in regards to this EA and discipline. I concur. I guess the cornerstone of my article was that old saying...that a good trader can take a ordinary system and trade it profitably and a normal trader can take a great system and eliminate money. Fortunately 99% of the folks on this thread are open minded and accept other people adn realise that their method is only one approach to trade. THe other 1 percent is simply a close minded trouble manufacturer with no grasp of the great number of versions in trading. I find it bizzarre that somebody of much self professed logic can completely dismiss other trader's methods. Having a rigid or fixed technique of trading in a market that is dynamic is absurd....it inhibits adaptibility.
What's better: A 1:2 Risk Reward Ratio applied to a system which has a 35% hit rate or a 1:1 Risk Reward Ratio applied to a system which has a 70% hit rate? The solution is neither. They yield the same profit. [/quote]
Well stated...
Reply With Quote