This allowed many of our forum members» to get a very tight stop and
large risk reward ratio.
Not exact matches
Whenever possible, I aggressively pyramided into winning positions during trending moves, effectively snowballing the trade's initial position size into a
larger position size which substantially increased the
risk reward ratio on each trade.»
Although a
larger mother bar on an inside bar setup is not really what I like to see, you can sometimes trade inside bars with
larger mother bars, and if you do, you will probably want to place your stop loss near the mother bar 50 % level, that is the «halfway point» between the high and low of the mother bar, as that is really the only way to get a decent
risk reward ratio on these types of inside bar setups.
Variance can be caused by a low winrate, coupled with a small
reward:
risk ratio, disproportionately
large losses,
large position sizing and high
risk can also attribute to variance.
However, when you pair these portfolios with the shorted sells of the
largest stocks of the lowest rank, you obtain a time robust strategy with a
risk /
reward ratio of about 1/3 with annualized gains of 30 % and maximum drawdowns of about 11 %.