Risk:Reward in Day trading Index futures

[praveen98]

Hi,
What is the minimum risk:reward for successful Day trading? Many times during day trading i confront opportunities with low R:r like 1:1 , 1:1.25 ...Whether to take those trades or not is a great dilemma for me...i would like to hear the views of fellow members on this aspect...:clapping:

 

[manishchan]

Hi,
What is the minimum risk:reward for successful Day trading? Many times during day trading i confront opportunities with low R:r like 1:1 , 1:1.25 ...Whether to take those trades or not is a great dilemma for me...i would like to hear the views of fellow members on this aspect...:clapping:

You must have minimum 1:2 otherwise it's difficult to survive in the long run. With 1:2 RR, you will make good overall profit even if the success rate of your strategy is 50%.

 

[suri112000]

I prefer 1:1 in partial booking to make it a free trade, and run the remaining position by TSL. The overall booking should be 1:2 or greater. Having said that your total winners should contain atleast 50 percent 1:2 or greater.

 

[rebeck10]

Hi,
What is the minimum risk:reward for successful Day trading? Many times during day trading i confront opportunities with low R:r like 1:1 , 1:1.25 ...Whether to take those trades or not is a great dilemma for me...i would like to hear the views of fellow members on this aspect...:clapping:

Wht your strategy for deciding which trade has a better R:R . Everybody loves a trade with higher r:r like 1:2 or 1:3 but the problem lies in spotting such trades , which are very rare indeed

 

[praveen98]

Wht your strategy for deciding which trade has a better R:R . Everybody loves a trade with higher r:r like 1:2 or 1:3 but the problem lies in spotting such trades , which are very rare indeed

Hi Rebeck,
Good question...According to me there are two prominent trading styles for day trading 1. Break out trading, 2. Trend line trading...The later one presents good r:r trades for me...The trend line trades will be rare as you said but some times "less is More" in day trading....:clap:
Here is my 1:4 risk/reward trade for illustration purpose....