Hi, I looking egy with risk reward 1:5 (or much more ). I using several indiors, but isnt easy to discover this particular setup.
Ideally is: 1 commerce profit, and 5-6 trades will get stoploss.
thankyou!
Hi, I looking egy with risk reward 1:5 (or much more ). I using several indiors, but isnt easy to discover this particular setup.
Ideally is: 1 commerce profit, and 5-6 trades will get stoploss.
thankyou!
I've never heard of a egy that allows 1:5 r:r off a single trade set-up using TA, even though you cor SL/TP as suggested by. Obviously though, that restricts your yield in currency terms, unless you use an extremely large place size - but that brings its own problems, which a minimal r:r.
But you can increase r:r without taking on additional risk by repeatedly pyramiding your primary trade. Keep all transactions open but proceed all SL's to the same price, a space back from your final entry equivalent to your initial TA-based SL from your primary trade. Difficult to describe in theory but easy with an illuion if you'd like me to do that.
Flip a coin, and also place your SL to ATR(20). Report back the way you go, you are going to be surprised.
Hello foxerr,
Any egy, such as random coin toss, may be a 1:5 R:R method if you simply set TP=5xSL.
The clever bit isn't that, it's finding a method where the success rate is far better compared to 17%, i.e. greater compared to breakeven condition of 5 winners for each 1 winner.
In training, you need to search for an entry which will burst away if you're right, or just get immediately stopped out if you're wrong for a very small loss. If you think about it, that usually means a method that very just picks a top or base so you may have a very tight stop. I am able to provide you two simple pattern based notions that can possibly meet this:
1. Breakout from a very well established range: enter at the breakout stage with a very tight stop spine within the range
2. A double top/bottom: enter just below/above the dual top/bottom with a very tight stop just past the extreme.
In both cases, if you're right, the trade can burst off on either a breakout or a reversal and you could realistically reach 1:5 R
BUT, the bad news: that rarely occurs. Most of the time you'll be stopped out because you do not have an explosive movement and you don't have the room for the transaction to barely breathe because of the necessary tight prevent. This is the inherent rub in what you are attempting to do: you need a tight stop to be in a position to realistically achieve a winner 5x too big, but the tight prevent creates a loss very hard to prevent. So your success rate is dismal and the method has no net profitable expectancy.
You will find it a lot easier if you look for a method with a demanding R:R. For instance, you'll find a lot of egies that can realistically provide 1:2 R:R where you can still have a reasonable stop distance to play .
Best of luck.
Hallo tomorton,
If you dont mind, please share you knowledge here.
Thanks and regards,
Anton
Here you go, take what you can from this and allow it to work for YOU
1. 4 Hour chart just, price cross the 50 EMA and near other side, either down or up
2. Price forms a Fractal degree
3. Input on breakout of said fractal degree, or candle near based on your egy, risk tolerance, market conditions, time of day, etc..
When additional fractals form, add on to the place as price action dictates.
It might or might not assist if the daily candles are on the exact same side of the 50 EMA as the 4 Hour candles, do some research.
Good luck
Trade 1 has been started at 5000. TA is used to find the SL level, and let us say this is conveniently 100pts below at 4900. Set buy order at 5100 with SL at 5000. If price falls into 4900, T1 has been stopped and 100pts-worth of account funding is lost.
Keep setting new buy orders 100pts above the past to open, and moving all ceases to continue trade's entry price less 100pts.
I will now jump forward to the situation where price has risen (without a significant falls) into 5400. Now, the basket contains 5 transactions -
Trade 1 5000: unrealised profit 400
Trade two 5100: 300
Trade 3 5200: 200
Trade 4 5300: 100
Trade 5 5400: /-0
Stops for all transactions are at 5300 and a buy order for Trade 6 is set at 5500.
Unfortunately, price never reaches 5500, but drops back to strike the stops at 5300 and all transactions are stopped out.
Therefore, the realised profits are -
Trade 1 5000: 300
Trade two 5100: 200
Trade 3 5200: 100
Trade 4 5300: /-0
Trade 5 5400: -100
Net result is a profit of 500.
At no stage does account funding risk surpass 100, so r:r is 1:5. Only launching a similarly sized long trade at 5000 with exactly the identical SL could have only netted 300 when it had been stopped.
Of course, it might be possible to manually shut Trades 1-4 when 5400 was reached for a realised profit of 1000, although this could limit any potential additional pyramids past that price. Still, that does signify a double-blind r:r and that I can not think of the following egy to accomplish that.
Do let me know if this seems wild or confusing.
Further to my very first article here, you might be able to observe or trade this if it satisfies you criteria
Like AUDUSD too, good luck
Hello tomorton,
Thank you a lot for your kind reply and help.
I am still confused. Can you please provide some examples on actual chart?
Thanks,
anton