To run after the ball would mean to use past data to predict where the ball is going to land. And that is about as far as the analogy can go because once the ball lands it cannot be compared to trading. The market never lands wheras a ball ...

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

Thank you Neo. Yes the trading style is a key factor too. I am specifically using this RR with a very short term scalping method.

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

This is an excellent point and it is true if one always trades a percentage of their current account balance for every trade. I actually use a fixed lot size for each trade and as the account grows, the risk percentage shrinks, until the beginning ...

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

Thanks for your comments about when the account takes consequtive losses, the same number of consequitve wins will not get the account to starting capital. I agree. I disagree with the comment I have quoted above though. You dont have to be an elite ...

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

But 'reacting' is actually just looking into the past to try to guage what the future might hold. When you 'react' to the market you are reacting to old data to try to predict future data. Price action is based on looking at something that is old ...

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

Nexus, I think you really need to post charts and show the entry price, what your intended exit is, your stop and your reasons for taking the trade. Simply saying "I am short the euro" and then "I bailed because the market was having a hard time" ...

Day Trading for a Living

Fantastic post!

why do people share profitable systems?

That would mean you would have no edge in getting the direction correct, in which case you should not be trading yet at all. As many here seem to be ignoring (or just missing), you need to have an edge before you even look at any kind of RR ratio. I ...

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

It's a shame you don't understand some basic concepts of mathmatics before you start making statements like "1:1 is kinda stupid". My 100TP & 100SL example at the beginning of this thread was simply to explain the mathmatics more easily. But it ...

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

As said by someone who can't spell 'you're', this made me chuckle. No offence, it just made me smile

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

So is this comment.

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

Yes, I was posting my setups before the fact and then posting my exits, with detailed charts. It was a lot of effort during live trading and there wasn't much interest so I stopped. If there had been lots of interest I would have carried on what I ...

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

Ok here is the table. According to it, with a 50% win rate at 1:1 RR there is a 100% risk of ruin. Now...if it is a true 1:1 RR trading method that means each win equals exactly 1 loss, with all transactions costs factored in. So it would actually ...

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

Thanks for the link. Near the begining of the article is this: "You can actually have a 3:1 Reward-Risk ratio and lose all the money in your account. You can also have a 1:1 Reward-Risk ratio and make money day in day out." This is what I've been ...

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

Didn't you post a thread a few weeks ago about trying to grow your account from $16 to 150k in 6 weeks? How is that working out?

BANK Trading : 14 pairs covered! including silver and Gold

pipmutt - With respect, you have your own style of risk reward management and that's great that it work for you. But it is not the only style that works. You are using a method that gives a high reward for the risk but likely a low win rate, with ...

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

I suggest you read my last post more carefully. The facts I mentioned were that you promote your website on Forex Factory and that you use a revenue generating system on said website. If both of those statements are untrue I'd love to hear how. I ...

why do people share profitable systems?

When there are no facts available all we can do is make assumptions based on lots of previous experience. I am very familiar with Google ads and I use them myself for part of another small business I run which has nothing to do with Forex. The only ...

why do people share profitable systems?

Bingo! Someone on the thread is getting it.

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

I don't think you understood the maths in my first post in this thread. With my trading method, if I started using a 1:4 RR I would lose. As I tried to explain already, with a 1:4 RR you're going to have a much greater chance of being stopped out ...

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