Hi all
Presently I am dong some backtesting. And I keep reading discussions regarding risk reward since I understand it is a very important and keep an eye on it.
Generally when senior traders on TJ discuss RR, is it after you have deducted equivalent points that are gone in form on brokerage, taxes AND SLIPPAGE?
Specifically, while backtesting, I have assumed a certain slippage points, and included brokerage and taxes in my calculations as well. So, for calculating R:R, should I deduct these extras or calculate R:R on actual points?
I do understand that at end of day profit matters and calculation method is not that important, but I want to benchmark my strategy against what senior members here say about R:R. In order to do so, I need to be on same calculation method as them.
Thanks in advance.
Smart_trade, Subhadip, TraderRavi, XRAY please do reply.
Presently I am dong some backtesting. And I keep reading discussions regarding risk reward since I understand it is a very important and keep an eye on it.
Generally when senior traders on TJ discuss RR, is it after you have deducted equivalent points that are gone in form on brokerage, taxes AND SLIPPAGE?
Specifically, while backtesting, I have assumed a certain slippage points, and included brokerage and taxes in my calculations as well. So, for calculating R:R, should I deduct these extras or calculate R:R on actual points?
I do understand that at end of day profit matters and calculation method is not that important, but I want to benchmark my strategy against what senior members here say about R:R. In order to do so, I need to be on same calculation method as them.
Thanks in advance.
Smart_trade, Subhadip, TraderRavi, XRAY please do reply.