Risk reward ratio works asumming you maintain the same lot size throughout your trading career.
Not exact matches
They
work strategically to protect and grow our clients» assets, carefully considering external forces that affect the markets, as well as each portfolio's
risk -
reward ratio.
So I reference that weekly to check out what's
working and what's not, make sure that my
risk /
reward ratios are in place.
If I understood correctly, you should put most of your trading money at
work, in one or two trades, in the right time, always using a stop - loss and with a good
risk /
reward ratio.
Prior to meeting Graham a few years earlier, Rea had been
working on a stock selection methodology that looked for companies with high
reward - to -
risk ratios.
Those same scalping systems would not
work if you adjusted the
reward to
risk ratio much higher because scalping setups typically have very little follow through.
This technique also
works better with steep trends because the
reward to
risk ratio tends to be better.
On trades where this entry
works out, you will get a better
risk to
reward ratio than with entry number 1.
With 1:1
risk to
reward ratio, and the strategy
works 60 % of the time.
Eventually, took a step back from actually trading altogether, and went back to basics — paper trading and
working the model and
risk /
reward ratio.
You should trade based on what
works and where price action is showing a good
risk /
reward ratio.
Interesting and sometimes compelling idea that may be very illiquid, may be a probability bet with a favourable asymmetrical
reward to
risk ratio, or may simply be a low quality business that is very cheap relative on a net - net
working capital or price / tangible book value basis.