High Quality Trades Only -
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thread: High Quality Trades Only

  1. #11
    Member
    47
    It does not much matter, with that example, because a system with a win-rate of just 17 percent is close to untradable for anyone without extensive experience, nerves of steel and a huge bankroll: the shedding patches (I do not mean just the consecutive losing runs) are so perilous that you'd never know whether you were just having a bad run or it'd completely stopped functioning, and its own equity-curve could be a horribly random shape.
    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

  2. #12
    quote So you wouldn't be interested in a method having a reward-to-risk ratio of 0.8:1, with a target of 8 pips plus a stop-loss of 10 pips, that transactions 20 times every day and wins 80 percent of its transactions, then? (I don't have one, but I certainly would, because it would net 440 pips' profit per week with a rather smooth equity-curve.) quote It doesn't matter whether it's dull: its mathematical validity is what matters. Reward-to-risk ratios alone don't let you know exactly what you need to know: win-rate and trade-frequency will also be essential, so they can imply anything...
    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

  3. #13
    Member Pan's Avatar
    52
    No more if you've got a 80% winning ratio along with your RR is less than 2:1 it's not worth it.
    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.

  4. #14
    quote We have quite different notions of value it, I suspect, Daniel. The machine I mentioned trades 100 times a week using a profit-factor of 3.2, since you can see from the figures over - but hey: if that's not worth it on your ex-clients and friends, then fair enough - I will gladly have their talk. An R :R ratio does not provide you enough info to know whether there is a system worthwhile or not. What matters is whether it consistently wins more from its own winning trades than it loses from its losing trades, and to function that...
    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 !

  5. #15
    Member
    47
    Fantastic input guys

    overall this will depend on the trader, which works for him

    Today we can post some trades

  6. #16
    Member
    47
    possible to brief USDJPY? on resistance area


  7. #17
    Member
    47
    shorted USDJPY on 119.70
    SL around 25pips, TP Approximately 60Pips


  8. #18
    Junior Member Jfokate's Avatar
    14
    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

  9. #19
    That brief set up does not look bad at all!

  10. #20
    Member
    47
    that short set up doesn't look bad in any way!
    USDJPY went 20Pips but I was stopped out at BE.
    Still holding my GBPUSD short

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