How Pros get RR of 4 or 8 and cover losses?

#1
hi
REWARD: RISK RATIO
What is pros success rate?
Less than 40% of trades are success.
60% OF TRADES ARE LOW RISK LOSERS.
Just COUPLE OF BIG WINNERS WIPES OUT ALL LOSSES.

How they survive with just 40% good trades?
becoz they loose very little on looser trades and win big on gainers

what would you say if a trader is trying 1:1 or 1:2 RR?
NO TECHNIQUE!!!!!!!!!!!!!!!!!
 
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#2
Lets say all inclusive cost of one side trade trip = 0.1

With RR of 1:1, the after cost effect is 1.1:0.9, the BE is at 55%
With RR of 1:2, the after cost effect is 1.1:1.9, the BE is at 37% and
With RR of 1:3, the after cost effect is 1.1:2.9, the BE is at 28%

Most of the traders Never Really Focus on RR, its the Win/Loss ratio everyone is after.

.
 

jahan

Well-Known Member
#3
hi


what would you say if a trader is trying 1:1 or 1:2 RR?
NO TECHNIQUE!!!!!!!!!!!!!!!!!
hello,

striaght answer is.......either he is still struggling or in learning process ....and can't able to figure out which R:R is to be considered.(the answer is also in Smart_trade signature).

but one thing i wanna tell is when market wants to give it will give hefty R:R ratio , yes ur right 40 to 55% system is tradable.

My suggestion is Apply logic for managing risk/money management,donot apply it for markets....bcoz market is three dimensional(living entity) we don't know what we are going to get in a given trade.

Regards,
 
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