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    • NaughtyPip replied Jan 16, 2017

      Forget the technical analysis. This is about R:R. The lines i drew on that painting were random squiggles and don't mean anything. Lets say you have a profitable strategy where you usually risk 1 to make 4 (r:r 1:4). Your setup forms (trade 1) and ...

      R:R Fallacy?
    • NaughtyPip replied Jan 16, 2017

      There is probability in both r:r strategies. They are both the exact same trades, the second one is just a later entry nearer the target. Gun to the head you have to take 1 or the other, or both, which one do you take.

      R:R Fallacy?
    • NaughtyPip replied Jan 16, 2017

      For those of you that would take trade 1 but not trade 2 You take trade 1 and price climbs up and your chart looks like this: image Now you are risking 40 pips to make 10 just like in trade 2.

      R:R Fallacy?
    • NaughtyPip replied Jan 16, 2017

      Well I wasn't sure of the logic hence the question mark after the title. My point was that your r:r changes as the trade develops. As you climb towards the target you are risking your unrealised profit which you have the opportunity at any given ...

      R:R Fallacy?
    • NaughtyPip replied Jan 16, 2017

      Don't worry about reason for entry, I am just asking people which R:R they would prefer. You can pretend both trades are different stages of the same setup. Would you prefer to enter near the top when you know price is heading up already and near ...

      R:R Fallacy?
    • NaughtyPip replied Jan 16, 2017

      Well what I was trying to find out was if there were any difference between the 2 trades. But I think I may have this wrong after speaking with a friend. My first thoughts were essentially both the same trade, just at different stage. So what i was ...

      R:R Fallacy?
    • R:R Fallacy?
      Started Jan 16, 2017|Trading Discussion|155 replies

      EDIT: I've changed the question to be clearer, ignore the poll as it is no longer valid. I ...