Note, inside bar pattern from last week netted a 1:2
risk reward winner.
Note, inside bar pattern from last week netted a 1:2
risk reward winner.
Not exact matches
When a National Institutes of Health award emphasized «aggressive
risk taking» among its criteria, all nine of the first
winners were men; later, terms such as «pioneering» and «high impact» attracted and
rewarded more women.
Achievable
rewards on this setup were at least a 3 times
risk winner if you entered at the 50 % retrace, and at least a 2 times
risk winner if you entered near the inside bar high breakout.
You have forgotten that the trading edge (trading strategy) is what creates the high
risk /
reward on your
winners.
I can promise you that you will blow out many trading accounts if you don't learn to take profits by setting logical
reward scenarios of 2, 3, or 4 times your
risk, if you trail your stop you can sometimes pick up 5 times your
risk or higher, it all depends on market conditions and whether or not you can deal with letting a 1 to 2 or larger
winner turn around and move against you because you were hoping for a bigger
reward.
Trading methods, trading systems, trading plans,
risk /
reward ratios, win rates, letting
winners run and cutting losers short can sound mysterious to new comers to the financial markets.
The key isn't to try to make more than 1:1
risk /
reward so that your
winners cover your losses (although that helps), but rather that you turn most of your failed trades into scratch / break even trades or very small losses.
We can see quite a large
winner could have resulted from these pin bars, depending on your stop placement you could have got a
risk reward of 1:3 or 1:4 or maybe more.
This is an example of the power of
risk /
reward setups, the trick is that it takes time to play out, most traders do not have the discipline to execute 100 trades flawlessly with a
risk /
reward of 1 to 2 and suffer through 65 losses and only 35
winners.
Winner and Avg Loser — keep the
Reward /
Risk metric constant — and see how different risk levels impact your account developm
Risk metric constant — and see how different
risk levels impact your account developm
risk levels impact your account development.