And, when you do set them up with say, a 80 % probability, you get
the same risk reward ratio as an IC.
Not exact matches
if do the
same thing over and over again in multiple bets
risk reward ratio is in our favour..
Those
same scalping systems would not work if you adjusted the
reward to
risk ratio much higher because scalping setups typically have very little follow through.
If you
risk losing the
same number of pips you hope to gain, the n you
risk -
reward ratio is 1:1, meaning you set your stop and limit e quidistant from your buy or sell price.
Important to note that after 4 trades,
risking the
same dollar amount per trade and effectively utilizing a
risk to
reward ratio of 1:3, using fixed $
risk per trade, the first traders account is now up by $ 800 versus $ 780 on the % 4
risk account.
Risk reward ratio works asumming you maintain the
same lot size throughout your trading career.
That
same portfolio also had a better
risk -
reward tradeoff during the period, as measured by the Sharpe
Ratio.