High Quality Trades Only
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thread: High Quality Trades Only

  1. #1
    Member
    47

    High Quality Trades Only

    Setups
    Any trading egy/system is welcome

    https://www.cliqforex.com/attachment...6759305622.ex4
    https://www.cliqforex.com/attachment...1885928377.ex4

    Criteria
    Trades with Risk Reward Ratio at least 1:1/2
    I aim for 1:2, However it's challenging to Find the setups.


    Simple Math
    Two parameters define itHit Ratio Risk:Reward Formula to figure your necessary Hit Ratio with an predefined R:R to acquire profit
    Hit Ratio = 1/(Reward/Risk 1)
    This formulation doesn't include trading costs such as spreads and commissions

    Example 1:Your RR = 1:2 Hit Ratio = 1/(2/1 1) Hit Ratio = 1/3 Hit Ratio = 33% You need to win only over 33 percent of your transactions to earn profits. In trading Hit Ratio ~ 40 percent to make profits Example 2:Your RR= 1:1 Hit Ratio = 1/(1/1 1) Hit Ratio = 1/2 Hit Ratio = 50% You want to acquire only greater than 50 percent of your transactions to earn profits. In trading Hit Ratio ~ 60 percent to make profits Example 3:Your RR= 1:1/2 Hit Ratio = 1/ 2(0.50/1 1) Hit Ratio = 1/1.5 Hit Ratio = 67% You want to acquire over 67% of your transactions to earn profits. In trading Hit Ratio ~ 75% to make profits Example 4:Your RR = 1:3 Hit Ratio = 1/(3/1 1) Hit Ratio = 1/4 Hit Ratio = 25% You want to acquire only greater than 25 percent of your transactions to earn profits. In trading Hit Ratio ~ 33 percent to make profits Example 5:Your RR = 1:5 Hit Ratio = 1/(5/1 1) Hit Ratio = 1/6 Hit Ratio = 17% You want to acquire only greater than 17% of your transactions to earn profits. In real trading hit Ratio ~ 25 percent to make profits
    Poll Updates
    Answer the survey to give data what traders use.

    Good luck whatsoever,

  2. #2
    To be honest I generally do not understand or even see the purpose of anything below 1:1?

    It ought to be 1:2, I can see why people could argue that instance.

    But if we change the analogy and state

    If wager #1 and that I flip a coin, heads you make #tails and 1 that I take it what would be the chances you take this deal?

    Today if you wager #1 and you make #2 pound, you are much more inclined to take that opportunity.

    In relation to this, you would wish to refine your trading so you are trading less overall anyway, and searching to get 1:2 ratio trades only, if that's not the case then risk management principles are required.

    Apologies if it is blunt, but my experience and my view.

    From one of my other students that have asked me, 'I can not appear to get any 1:2 risk to reward ratios' then your egy needs to be refined so you know where your goals are, resistance, supports etc..

    Hope this helps somebody out there studying.

    Happy Pipping!

  3. #3
    Member
    47
    Brief on GBPUSD on Trend Line plus evaluation of resistance also a 61.8 retracement of previous down move,
    Approx 1:2.5 RR.



    Hope it work out

  4. #4
    Member
    47
    Hope this helps somebody out there reading. Joyful Pipping!
    Good insight, please show us trade samples.
    Keep posted

  5. #5
    Ok,

    I'll be also scanning tonight so I could upload any potential trades I will take this week.

    Should I take any positions this week and think it would be helpful for you I'll also share.

    That short on cable does not look too bad. The RR is there I am not on my own charts at the moment so cant see the picture. M inquiry is how can you determine SL? The TP I can view take out the former swing low, unless there's a resistance line there from before?

    Happy pipping

  6. #6
    Member
    47
    The Simple Math
    There are only two parameters That Specify it:Reach Ratio Risk:Reward
    There is a very simple formula to calculate your required Hit Ratio with a predefined R:R to gain profit
    Hit Ratio = 1/(Reward/Risk 1)
    This formulation doesn't include trading prices like spreads and commissions

    Example 1:Your RR = 1:2 Hit Ratio = 1/(2/1 1) Hit Ratio = 1/3 Hit Ratio = 33% You need to win just over 33% of your trades to earn profits. In actual trading Hit Ratio ~ 40 percent to make profits
    Example 2:Your RR= 1:1 Hit Ratio = 1/(1/1 1) Hit Ratio = 1/2 Hit Ratio = 50% You need to win just more than 50 percent of your trades to earn profits. In actual trading Hit Ratio ~ 60 percent to make profits
    Hint 3:Your RR= 1:1/2 Hit Ratio = 1/(0.50/1 1) Hit Ratio = 1/1.5 Hit Ratio = 67% You need to win over 67% of your trades to earn profits. In actual trading Hit Ratio ~ 75 percent to make profits
    Hint 4:Your RR = 1:3 Hit Ratio = 1/(3/1 1) Hit Ratio = 1/4 Hit Ratio = 25% You need to win just more than 25% of your trades to earn profits. In actual trading Hit Ratio ~ 33% to make profits
    Example 5:Your RR = 1:5 Hit Ratio = 1/(5/1 1) Hit Ratio = 1/6 Hit Ratio = 17% You need to win just more than 17% of your trades to earn profits. In actual trading Hit Ratio ~ 25% to make profits

  7. #7
    Member
    47
    Ok, I will be additionally scanning tonight so that I could upload any prospective trades I am going to take this week. Should I take any places this week and believe that it would be helpful for you I will talk about. That brief on cable does not look too bad. The RR is there I am not on my charts at the moment so cant see the complete picture. M question is how did you decide that SL? The TP I can watch take out the swing low, unless there's a resistance line there from earlier? Joyful pipping
    thanks,
    I placed SL above swing high. I put TP on the support region
    I project it'll go down because the previous leg was down.

    Hope it gives some pips

  8. #8
    Member
    47
    long on USDCHF? Possible fantastic setup
    Set SL below the support, max TP round the resistance


  9. #9
    Taking your trades I will not counsel what to buy or sell as that's down to you.

    Your math on RR says it all, whats the purpose of going for anything 1:1, the fact is at a 1:3 ratio and you loose 70 percent of the time you are in profit.

    Who cares about winning %, the most important goal of the sport is P/L.

    Now here's a suggestion,

    whenever you are placing your SL above a area which you've chosen remember there is also a spread from the brokers! Take this into account and don't let the broker take you out of your trade though it did not reach that price.

    What I mean is

    1.5 is your price

    Buy is 1.6

    Sell is 1.4

    It comes back to 1.4 but your SL is 1.5, you still get taken out.

    Does that make sense?

    Hope this helps you a Little More

    Joyful pipping

  10. #10
    Member Pan's Avatar
    52
    I generally do not know or even understand the purpose of anything below 1:1?
    So you wouldn't be considering a method with a reward-to-risk ratio of 0.8:1, with a goal of 8 pips plus a stop-loss of 10 pips, which transactions 20 times a day and wins 80 percent of its transactions, then? (I don't have one, but I surely would, since it would net 440 pips' profit per week with a rather smooth equity-curve.)


    Apologies if it is dull
    It doesn't matter whether it is blunt: its mathematical validity is what matters.

    Reward-to-risk ratios alone do not let you know exactly what you need to understand: win-rate and trade-frequency are also essential, so they can imply anything important, within reasonably practicable and realistic trading parameters.


    Hit Ratio = 1/6 Hit Ratio = 17% You need to acquire just more than 17 percent of your transactions to make profits.
    It does not much matter, with that example, since a system with a win-rate of just 17 percent is close to untradable for anyone without extensive experience, nerves of steel along with also a big bankroll: the shedding patches (I do not mean only the consecutive losing runs) are so perilous that you would never know whether you were only having a bad run or it'd completely stopped working, and its own equity-curve would be a horribly random shape.

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