Sentences with phrase «risk reward ratio of»

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).

A risk reward ratio of 3 - 5 would be more interesting.

For example, a risk reward ratio of 1 would mean that you are okay with risking a 5 % lost to make a 5 % gain.

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.

I like the risk reward ratio of buying an index like asset at a discount.

If we aim for a risk reward ratio of 1:2 on every trade we take, we only need to be right about 35 to 40 % of the time to make a decent profit.

Not exact matches

One of the tools we use in trading is the «risk - reward ratio» — basically, how much risk you're willing to take on for how much potential reward.

It's not going to make any one of us rich, but the risk - reward ratio is pretty good, and sustainable.

At Fiji, Robbins offered some insight into what Jones» daily email updates look like, saying, «he sends me a checklist of what we measure, everything from his NAV [net asset value] to his [portfolio] weights, what's happening in his body, to his focus, to ratios of risk - reward that we're measuring, and then he does a narrative for me.»

We estimate that the risk / reward ratio of such a strategy continues to be attractive.

Ideally, we were prepared to enter a short position if $ GLD bounced into key resistance of its 50 - day moving average, which would have provided us with a low - risk entry point with a very positive reward - risk ratio.

Risk Reward, or Risk Reward Ratio, most easily thought of as the size of your stop compared to the size of your profit target

As always, patience to wait for proper trade entry points with favorable reward - risk ratios is important, so we are not interested in chasing ETFs just for the sake of action.

Further, because this is a Pullback Buy setup, the reward to risk ratio of the trade setup is favorable.

Looking at examples of both bullish and bearish setups in gold we can see that options offer a trader superior risk management and better reward to risk ratios.

Reward - risk ratio (TP: SL) should ideally be a minimum of 3:1 or higher for best results.

The trade offers us a risk to reward ratio of about 1:1.5.

This gives us a risk to reward ratio of greater than 1:2.

The stock has a risk to reward ratio of 1:1.5 at the first target objective and a ratio of about 1:2.5 at the second target objective.

Loss / Win Ratio: 33.67 / 66.33 but inspite of that I am profitable due to Risk / Reward (The important lesson that I learnt from you) I am feeling confident once again and I am developing the traits of a pro trader as you outline in your articles.

Over at Make Money Your Way, Rolf from Tradecitey.com explains the importance of risk reward ratio and how to use it.

Although it obviously may have been better to buy on the actual day of the June 14 gap up, this ETF is still not too far gone to provide a decent buy entry with a positive reward - risk ratio.

We only risked about 3.5 % on the trade, so in terms of reward to risk we were at a healthy 4 to 1 ratio.

With a pre-entry price target of $ 77.40, we held on to IOC in hopes of achieving a 2 to 1 reward to risk ratio on the trade (potential gain based on the target being at least double the potential loss based on the preset stop price).

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.

You must devise a trading strategy that exhibits a minimum risk - to - reward ratio of 1 to 2 because you need to cater for inescapable losses as a basic component of your trading plans.

But when the proper technical signals line up, the reward to risk ratios are good, and entry points are low - risk, successful traders take action and aggressively trade in the direction of the dominant market trend.

Furthermore, false breakout entries enable short - term swing traders to have a clearly defined stop price below the low of the pullback, which creates a very positive reward - risk ratio for the setup.

Therefore, we're not in a hurry to enter multiple new positions (either long or short) ahead of the holidays, but will still consider new stock and / or ETF trade entries (possibly on the short side and / or inverse ETFs) with reduced share size if an ideal trade setup with a firmly positive reward - risk ratio presents itself.

The resulting Sharpe ratio (reward to risk) of 0.73 seems like a good outcome for an active investor.

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.

One of the most common mistakes novice options traders make is to only take into account the risk / reward ratio of an options trade without considering the probabilities involved in the specific trade.

With a potential reward of just over 2 points, combined with 1 point of risk, this setup still provides you with a decent reward - risk ratio of better than 2:1 (just over 2 points reward with 1 point risk).

In fact, a risk - to - reward ratio of 1:3 or higher is preferable.

As long as the ratio of risk paid for reward is less than 1:1, your good.

So it's a situation with a bit of hair, but I also think that this is a deal that is almost certain to be completed, and because of that it's still a bet with an attractive risk / reward ratio.

Six to one is truly a compelling ratio of reward to risk.

However, after three days in a row of big gains, the price action became too extended in the short - term to provide a positive risk - reward ratio.

That's why we only focus on buying stocks and ETFs with a potential reward to risk ratio of at least 2 to 1.

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.

Construction methods include equal weighting, two versions of minimum volatility, three versions of mean - variance optimization, eight versions of reward - to - risk timing (six of which involve factor models) and a characteristic - based scheme that each year estimates stock weights based on market capitalization, book - to - market ratio, gross profitability, investment, short - term reversal and momentum.

Many (if not most) people would take cover instead of taking the risk because the risk / reward ratio isn't worthwhile.

The risk / reward ratio is different for political fundraisers, since they have the urgency of a short deadline in front of them.

The main question of interest is whether the apparent risks outweigh the potential benefits (called the risk - reward ratio).

The risk - reward ratio is the assessment of whether the apparent risks outweigh the potential benefits.

This therefore leaves the question of whether the risk - reward ratio for Olympic weightlifting training is acceptable for adult and youth athletes who do not compete in Olympic weightlifting.

One complicating factor that makes it difficult to assess the risk - reward ratio of Olympic weightlifting training in relation to conventional resistance training is the differences between Olympic weightlifting and weightlifting derivatives.

It is your body and you know your body best but risk vs. reward for performing these exercises is not a good ratio and I would highly recommend you go back to the Hab It dvd for the remainder of your pregnancy.

Noise can also be used creatively to lure enemies away from their patrols, but the ratio of risk vs reward must be carefully considered.

TREND REVERSALS Bottoms & Tops Fishing for Profits Trading bottoms and tops have the highest reward: risk ratios of all short - term trades.