I say that because I get a lot of emails from traders telling me they can't get a proper 1:2 or
more risk reward ratio because there are too many support or resistance levels in the way.
I say that because I get a lot of emails from traders telling me they can't get a proper 1:2 or
more risk reward ratio because there are too many support or resistance levels in the way.
Not exact matches
As such, we expect any pullback to be short - term and eventually lead to fresh buying opportunities with
more positive
reward -
risk ratios for buy entry, at least at the present time.
However, yesterday's price action in EEM now makes our
reward to
risk ratio even
more favorable for -LSB-...]
However, yesterday's price action in EEM now makes our
reward to
risk ratio even
more favorable for buy entry because the ETF gapped lower on the open, then reversed to close at its intraday high.
XRP has the lowest
risk /
reward ratio in the market right now which means you stand to gain a lot
more for taking a comparatively smaller
risk.
We buy stocks with the potential to go up 50 % or
more over the next two years, with a
reward - to -
risk ratio of three to one.
The benefit of this technique is that it's a
more conservative approach (because price is already established above the neckline) that often leads to a good
reward to
risk ratio, especially with descending necklines (see the image above).
In my experience, patterns with horizontal or descending necklines provide better
reward to
risk ratios (
more on this below).
For even
more detail, adding elements such as the direction (long or short) of your trades,
risk to
reward ratio, length of each trade, photos of your setups and exits... can be very enlightening.
The entry could have been taken at the open of the next candlestick after the bearish confirmation candlestick closed, if you wanted to be
more aggressive and improve your chances of a good
risk to
reward ratio; or you could have taken the trade once price broke 1 pip below the low of the confirmation, as I've shown in the example above.
we have to take decision at the end of 6 months when
risk reward ratio as per our analysis say it can not give
more than 20 % annualized return from there onward and on the other hand some other cheap stock are waiting for us... Even if one stock which we just sold after earlier will become multi baggar does not mean law of probability say us to hold it..
One disadvantage of the cypher pattern is that it has a tendency to provide trading setups in which the
reward to
risk ratio leans
more toward
risk than
reward (at least at the first take profit level).
With Wells Fargo, the stock has
more than doubled and that has dramatically changed the
risk reward ratio.
The volatility of the DRS is certainly higher than any of the bond options, but the DRS's superior Sharpe
ratio of 0.67 indicates the additional
risk was
more than adequately
rewarded with additional return.
The second method is a bit
more aggressive and offers a lower
risk to
reward ratio.
Therefore, in MCT there exists a
risk /
reward ratio — i.e., the
more the
risk of loss, the greater the possibilities for
reward.
I will continue to favor the 50 % entry method for its
more favorable
risk - to -
reward ratio.
It offers a
more favorable
risk - to -
reward ratio, sometimes doubling the potential profit of a setup.
And then later if the situation becomes better (getting better price and
risk reward ratio) I enter
more money.
The
risk - to -
reward ratio is far
more dangerous down at these lows than it was back then.
A
risk reward ratio of 3 - 5 would be
more interesting.
If you look at the equity curve you can see that two things: 1) When the market became completely chaotic the system lost
more trades than usual but it never resulted in a huge draw down because of the favorable
risk reward ratio of 1:4 (or better).
If a trader
risked getting into 2000 pips drawdown (or
more, potentially
more than their free margin can tolerate) for the usual 100 - 200 pips profit it would mean a disastrous
risk - to -
reward ratio accompanied with a potentially long - term capital lock.
During a
more volatile time, when the potential loss is 100 - 200 pips, it stops being an effective
risk to
reward ratio.
The exact value of «far
more dangerous» depends on the local
risk of cycling — in England the estimate is that per cyclist the
risk:
reward ratio is about 1:10; here in the US (with our riskier roads) it is about 1:5, but in the Netherlands it is 1:25.