Mathematically speaking greater than 17 percent is minimal using 1:5.
Realistic is about 25-33%. However, of course it would be better to possess higher.
Personally I target around 1:2 with Strike rate around 50 percent
Mathematically speaking greater than 17 percent is minimal using 1:5.
Realistic is about 25-33%. However, of course it would be better to possess higher.
Personally I target around 1:2 with Strike rate around 50 percent
No even if you've got a 80% winning ratio along with your RR is less than 2:1 it's not worthwhile.
Trading is a personal company, so if it works for you it works for you then great for you.
With reference to my bunch of friends, all of my ex clients and professional traders I know, NO-ONE trades less than 2:1, in fact I think I am the only one trading 2:1 where they're 3:1 and above.
As I mentioned previously in a post before
Those pips = cash
Why would I risk #10 to make #8? When if I work and wait for refine my entry and risk #10 to make #20.
I doubt anyone can keep a 80% winning ratio all year round.
But hey if it is good for you and keep doing something.
Joyful pipping
We have rather different ideas of worth it, I suspect, Daniel.
The system I said trades 100 times a week with a profit-factor of 3.2, since you can see in the figures over - but hey: if that is not worth it to your ex-clients and buddies, then fair enough - I will happily have their share.
An R ratio alone doesn't give you enough info to know whether a system is rewarding or not.
What matters is whether it wins more out of its own winning trades than it falls out of its losing transactions, and also to work that out, you also need to understand its win-rate. (And knowing its trading-frequency doesn't hurt, either: a system that trades 4 times per year is not much good to anyone.) However, to discount a system that takes 100 trades a week with a profit factor of 3.2 on the grounds that you have already arbitrarily determined that anything under 2/1 R is not worth it strikes me as somewhat bizarre, to put it ultra-tactfully.
I agree that R :R does not provide you enough info to know whether the machine is good enough or not in the idea of building your egy you should be aiming to these amounts and applying good risk management
indefinitely 100 trades per week a big and way to much for me personally but that goes back to the point that trading is a personal game if it works then adhere to it, and Happy pipping!
However I completely disagree that well not systems, however you will find professionals who their trade frequency is quite low, there are a number of long term holders that can exchange 4 times annually and also have huge returns or even conducting trades from preceding decades.
And yes in my grounds of trading I generally would not have anything for 1:1, anything under 2:1 would not be considerable. Bearing in mind I do take trades of 1:1.5 however they're intraday ones but through the time frame when these happens you judge for yourself whether value carrying or not.
On this grounds of this, risk reward ratio is just 1 section of risk management prior to entering to a trade. Risk % draw reverses these all occur too, and actually should be taken into account
No matter I am not asserting that 1:2 is a must go. But its attractive than the usual 1:1.
In the end of the day this is subjective
In case your P/L is positive in the future and you're living your life then that is all that matters.
Happy Pipping !
Fantastic input guys
overall this will depend on the trader, which works for him
Today we can post some trades
possible to brief USDJPY? on resistance area
shorted USDJPY on 119.70
SL around 25pips, TP Approximately 60Pips
I go around 1:1/2 to 1:3
However, the average is about 1:1 for breakouts, 1:2 for swing
btw, nice thread
USDJPY went 20Pips but I was stopped out at BE.
Still holding my GBPUSD short