Sentences with phrase «reward ratio»

The phrase "reward ratio" refers to the comparison between the potential gain and the potential loss in a particular situation. It helps determine the amount of reward or profit you can potentially earn in relation to the potential risk or loss you may face. A higher reward ratio implies that the potential gain is greater than the potential loss, making it more favorable, while a lower reward ratio means the potential loss outweighs the potential gain, making it less attractive. Full definition
I like the risk reward ratio of buying an index like asset at a discount.
Pro traders calculate their risk first and then their reward, if the risk reward ratio of a trade doesn't make sense then they don't trade.
You'll have to decide what is the best risk reward ratio for you.
Have a specific risk - reward ratio in mind.
May provide a more favorable risk vs. reward ratio, especially when trading with the overall trend.
You can do this through the use of price action strategies, a favorable risk to reward ratio as well as trading with the momentum.
I like it because you give yourself a better risk to reward ratio when it happens.
This signal tries to create a great risk / reward ratio based on buying a deep dip of a historical price range.
Their analytics tool also takes your experience and preferred risk to reward ratio into account to create a plan tailored to your needs and goals.
This makes the risk to reward ratio extremely favourable.
You need a high trading probability to even out the low risk vs reward ratio.
If after doing that, there is a decent risk reward ratio possible on the trade, it's a trade that's probably worth taking.
As I have learnt, when trading price action with a trading plan, my risk reward ratio equals profit.
Of course, things like momentum and favorable risk to reward ratios come into play.
The key to success is to always use a risk to reward ratio where your potential profit is at least twice your risk.
Outside of the 20 % band, the risk / reward ratio between stocks and bonds is not in your favor, regardless of your tolerance for risk.
We estimate that the risk / reward ratio of such a strategy continues to be attractive.
All this information is then presented to a private mortgage investor who can then determine if a particular loan has the correct risk reward ratio for their investment.
It will help you stay patient in the face of uncertainty and improve your risk to reward ratios in the new year.
Assuming the risk vs. reward ratio is acceptable, you may then determine the appropriate size trade to place based on your percentage risk per trade.
I don't consider it to be aggressive because it gives you a much better risk to reward ratio when it works out.
You have a good risk / reward ratio based on your stop loss and open ended profit or you don't.
For example, a risk reward ratio of 1 would mean that you are okay with risking a 5 % lost to make a 5 % gain.
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.
This is a good risk reward ratio trade.
Both use a 1:2 risk - reward ratio with a stop at 100 and a limit at 200.
Buying at such extended levels could certainly yield more upside, but the risk of a significant near - term correction gives the trade an unappealing risk to reward ratio at current levels:
On January 28, 2011, even though valuation remained reasonable, the risk / reward ratio turned less attractive at 1285.
Some buy high in the hopes of selling higher, while others try to create a great risk / reward ratio by buying low hoping to sell on rebounds or reversals in price action.
It has taken me a few years and now I am aware of the importance of the essentials: trader mindset, risk - reward / position size, risk management, money management, and a winning system that favors probabilities on the side of the trader, (win - rate with a matching risk - reward ratio per trade).
However, it may pay to be wary of entering the market at this late stage, as risk / reward ratios tend to become unfavorably skewed late in a cycle.
I really like the over 2.25 goals in this game as the risk / reward ratio seems highly stacked in our favour.
This is the power of your average risk reward ratio over a series of trades coming into play; we will see this in action below...
With a stop loss just above the pin bar high and an entry near the pin bar 50 % level, we would have the potential for a 200 or 250 pip gain and a 1:2 risk reward ratio if this market moves down into 1.6100 — 1.6000 area.
Note: the targets are 1 or 2R or 3 or 4R depending on which entry you took; if you enter on a limit entry near the pin 50 % level, the risk reward ratio potential is higher.
Inside bars are one of my favorite price action setups to trade with; they are a high - probability trading strategy that provides traders with a good risk reward ratio since they typically require smaller stop losses than other setups.
It always baffles me that traders think they can compute a risk / reward ratio before a trade.
Risk reward ratio works asumming you maintain the same lot size throughout your trading career.
suppose there is an strong uptrend in any pair and as per Risk to Reward ratio ie.
For Third Avenue, there does exist a risk - reward ratio insofar as the quality of the company, and the terms of the securities issued by the company, are concerned (e.g., typically a first mortgage obligation of an issuer has a lesser risk element than that company's common stock issue, other things being equal).
Note: When first implementing this «specialist» trading approach it might be best to just aim for a strict 1:1 risk reward ratio just to build a little confidence and build your trading account up a little.
However, for TAVF, the existence of a risk - reward ratio implicit in the quality of the issuer, and the terms of issue, are more than counterbalanced by the fact that most of the time securities prices represent a material disequilibrium.
Implementing a favorable risk to reward ratio single - handedly turned my trading around in 2010.
[Well, another caveat: That's really not my objective — I'm more focused on absolute returns & generally improving my risk - reward ratio].
Your R - multiple is simply your risk to reward ratio stated as a single number.
During this webinar, I will share with you how you can use pullback strategy to implement a good risk to reward ratio swing trade.
The point is that a measurement in pips made without a specific risk to reward ratio attached to it is essentially a meaningless figure.

Phrases with «reward ratio»

a b c d e f g h i j k l m n o p q r s t u v w x y z