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

I promised myself that I would not get dragged in but now its too late

[color=black][font=Verdana]1:1R is a perfectly legitimate way to trade. And I personally trade similar ratios that the majority of the time. My edge is based on market microstructure inefficiencies and this is my edge gives me. I have attempted to use my edge to enter the market'risk free' however the results have been mixed and physiologically tough to manage. Of course once in a while you can mix this...

Well it's a past success rate, you'll have to wait and see that the future triumph rate.

I used to write games in 6502a on a BBCMicro back from the afternoon, name.

I promised myself I would not get hauled in but now its too late

[color=black][font=Verdana]1:1R is a totally legitimate way to trade. And I personally commerce similar ratios that the majority of the moment. My edge is based around market microstructure inefficiencies and this is my edge effectively gives me. I have attempted in the past to use my edge to enter the market'risk free' the results are mixed and physiologically hard to deal with. Of course once in a while you are able to mix this...

Great post, especially the part about triumph rate. This is something which varies depending upon the sample size.

And also, I agree with your last remark. We must be prepared for the risk that we are simply having a fantastic year and our methods will fail, following year. Never take any amount of success for granted and be prepared if they begin to fail for a protracted amount of time, to change your methods.

I used to write games in 6502a on a trunk in the afternoon, class name.

Ah yes I remeber well the hours of typing in games in the likes of Beebug. . And of course the hours of debugging your mistakes later... a mis-spent childhood? most likely...

Ah yes I remeber well the hours of typing in matches in the likes of Beebug. . And of course the hours of debugging your errors later... a mis-spent youth? Probably...

The fantastic old times, where a developer ( me ) and a graphics guy ( my partner ) could write a fine computer game in a few months, nowadays there are 100's of individuals and lots of years

Nevertheless making a living off it 25years later is the scarey part.

The problem with this discussion is that for some reason unbeknown to me folks have decided to challenge the idea that trading a system that yields 60-70% hit rate at 1:1 risk benefit ratio is an acceptable means to trade.

Most people that are confident in their knowledge, experience, and their own egy would be perfectly pleased to answer the critics and sceptics, it tests their resolve and might highlight some deficiencies within their egy. The other side of the coin is that confirm that their ideas are solid and also can strengthen their resolve.

Unfortunately you don't appear to come in that egory, you just pop up and make some wild unsubstantiated claim and expect all to pat you on the back and say well done. You are selective about answering a number of the very valid questions and challenges that are logically and logically presented. That indicates to me which you simply lack the knowledge and experience to answer to all those struggles and questions or present a instance or that you're either far from positive.

What's the purpose of this thread? No more egy, no specifics, no performance statisticsan unsubstantiated claim. That is not much help to anyone if that was your intention or even guie to novices. If that wasn't your intention then it is a mystery as to your purpose for starting this thread.

My suspicion is that many are taking the if I can not do it, it must be impossible mindset and also that the majority of the bashers aren't profitable themselves and stuck in a upset and bitter place.

I don't recall anyone saying anything was impossible but if it suits you to believe that then think it rather than consider the possibility that unsubstantiated claims are challenged for an excellent reason. Novices being newcomers can easily be led, they don't really know what they're looking at, and they don't know the questions to ask so it's helpful to have somebody asking pertinent questions.

Just as not being able to do it, seriously? It is not rocket science you know, you're barely scratching the surface of what can be accomplished trading in this market.

the stage you're missing here is it does not matter who's account is in what degree of percent increase or yada yada yada

Should you insist on sticking your head over the parapet and making wild unsubstantiated claims to a public forum you then open yourself up to scrutiny. Either rise to the challenge or accept the inevitable, it is just the way!

The Mutt will strangely grow on you, yes he is a pain in the arse reminds me of well me strangely

OMG where is that rope....

Anyhow I thought you were heading down the gym today and taking your girl friend out for a meal at McD's to utilize your staff discount?

OMG where is that rope....

Anyhow I thought you're moving down the gym now and taking your lady friend out for a meal at McD's to use your staff reduction?

To lazy for the Gym traded and made $12 or something good day for me LOL

Children returns to parents, have changed, scrubbed up then off to pick up her.

Hmmmm, next door works on McD's can borrow there card, fantastic strategy!!

Most people who are confident in their knowledge, experience, and their egy would be perfectly pleased to answer the critics and sceptics, it tests their resolve and may highlight some deficiencies in their egy. The opposing side of the coin is their resolve may strengthen and also confirm their ideas are solid.

Unfortunately you don't seem to come in that egory, you simply pop up and make some wild unsubstantiated claim and expect everyone to pat you on the back and say well done. You're selective about answering a few of the very valid questions...

Wow, if you think somebody recommending a 1:1 RRR and saying it can directly alter the success rate is a wild, unsubstantiated claim then you have to lead a very dull life.

Which are these challenges you're asking me to climb to? This is actually entering the land of the mad. I must giggle I can only assume you're currently doing so for entertainment purposes. Have you tried going bowling or to the cinema? Prometheus is excellent.

And I have already answered your query what is the objective of this thread more often than once in this very thread. Also you're criticising the fact that I have not explained and shared my egy here. Pipmutt, if you have not realised this is not the system part of the forum, it's for overall trading discussion and my topic of discussion was specifically on the benefits of a 1:1 risk reward ratio.

This is a dreadful waste of time. Can not you go and cause trouble? Or read a book or something else?

If you've got a 70% win rate at 1:1R then you should have no difficulties risking 10% per transaction. Lower the win rate and boost the R:R with this sort of risk along with the drawdown will be puke inducing.

This explains clearly why the 1:1 trader will wash the floor with any additional r:r. He could risk more and compound quicker because of a higher win rate. (10 percent per trade is most likely a bit much though, 70% win rate could still regularly produce 3 transaction or more losing streaks.)

Other benefits are plogical. A higher win rate and reduced drawdown is simpler to perform plogically and therefore reduces the risk of trader error

Thats why it simply makes sense to me....unless,

you can attain the same high win rate using a greater reward to risk and commerce often sufficient to match the compounding. If this is so, I take my hat to you.

I am never going to attain the patience and discipline required to attain this lofty goal because I cant be bothered with that much effort . Ive done the 10,000 hours, my time and today trading relax and revel in, happy to exploit the aforementioned benefits of 1:1 rr to assist me.

Its simpler. Anything which makes trading easier is is that a fantastic thing. We all have lives to live besides the market

So why put all that pressure on to get a huge edge big enough to operate a 1:2(or greater) RR?

Here is an example. With the advantage of hindsight, there were more pips to be had but I am not able to use hindsight in live trading.
I can nevertheless use 1:1, commerce in the wrong direction, possess a high win rate, compound frequently, and milk 5% from a single session

I'm never likely to achieve the patience and discipline required to achieve this lofty target because I cant be bothered by that much effort . Ive done the 10,000 hours, my time and today trading unwind and enjoy, joyful to exploit the aforementioned benefits of 1:1 rr to assist me.

Its easier. Anything which makes trading more easy is is that a fantastic thing. We all have lives to live apart from the market

So why put all that pressure to get a massive advantage large enough to work a 1:2(or more ) RR?

Here is an illustration. With the benefit of hindsight,...

Yeah I hear ya MAC-Doug, Take what Mr. Market provides and be happy with it.... Tomorrow is another day.

As soon as you've put the 10,000 plus hours in if you do not own your system by then you probably will never have just one.... And when I say 10,000 hours I say loosely since that is less than 417 times (with no sleep)... and some might require 15,000 or 20,000 hours.

Sooner or later you will understand exactly what you can live with and sleep well and live life well. That is all that matters anyway when it boils down to it.