MoneyTec Traders Community Forum - View Single Post - Why we are taught to set risk/reward ratio larger than 1

dirk · 22-10-2003, 03:43

What I don't understand of all this is next : you want a 75 pips profit and want only a 25 pips to risk, if you ask me 3 times out of 4 , you will get stopped out for sure, so you will make no money at all and will somebody have the skills to be stopped out 3 times out of 4 and still believe in his fourth trade and "hoping" this will be the good one?
I'm working completely different , my system's accuracy is about 70% , somethimes even more, when I got a signal on the 10 min chart, i take it and put in a 40 pip stop, in the next 30 min, if the signal was really good, the 30 min would give me a signal in the same direction, if it doesn't give a signal, i simply close the trade.
So I move on up to the 4 hour chart (if it give signals up to there), so once a week, i make a 150-200 pip trade, rest of days, i'm taking small profits and also losses.
Average monthly pip gain is around 400-550
Risk reward most of the week smaller the 1, once a week(most weeks)3 up to 5 to 1.
Think about it.
Any comments?

22-10-2003, 03:43	#20
dirk level 1 Join Date: Mar 2003 Posts: 19 Downloads: 0 Uploads: 0 Rep Power: 0	Risk reward What I don't understand of all this is next : you want a 75 pips profit and want only a 25 pips to risk, if you ask me 3 times out of 4 , you will get stopped out for sure, so you will make no money at all and will somebody have the skills to be stopped out 3 times out of 4 and still believe in his fourth trade and "hoping" this will be the good one? I'm working completely different , my system's accuracy is about 70% , somethimes even more, when I got a signal on the 10 min chart, i take it and put in a 40 pip stop, in the next 30 min, if the signal was really good, the 30 min would give me a signal in the same direction, if it doesn't give a signal, i simply close the trade. So I move on up to the 4 hour chart (if it give signals up to there), so once a week, i make a 150-200 pip trade, rest of days, i'm taking small profits and also losses. Average monthly pip gain is around 400-550 Risk reward most of the week smaller the 1, once a week(most weeks)3 up to 5 to 1. Think about it. Any comments?