Dear BLUSKY, thank you for participating it is really a pleasure.
First of all, you are right: of course it is not a set 1:3 or 1:2...no way...this is funny. Lets say if I see stop is 50 pips, it doesnt mean I automatically say "oh, ok - then I target 150 pips"
My risk reward varies from 1:2 to 1:5...it all depends on target I see and the potential I estimate trade to move. I may even take trade that has 1: 1.8 ratio, but for less I wont settle...I REALLY do pass trade signals sometimes due to poor r:r...
I see you have completely different, agressive aproach, trade both intraday and longer? I admire people copmbining these 2 styles to achieve better results. Still, after 6 years I am not givving up an idea of developing intraday aproach to help me improve my performance. I see many things in intraday observation of the market, and it is a shame I dont benefit of it. I hope I find some time in near future to set up another (hopefully this time profitable) intraday system and test it, hopefully to add to my trading style afterwards...
Keep it up.
I agree with Mongoose as well - of course most of trades dont even get close to estimated targets...
My number stands around 8% - 9% of trades hitting initial target. And taken that my avg target is +200 pips, it it is not bad. And that number looks even better if we take in account that average r:r ration stands at 1:3 (well its 1 : 2.9... so its almost 1:3) and taken than trades are distributed as:
losing trades 33%
profitable trades 28%
breakeven trades per month 39%
And you are absolutely right on issue of high ratio being survival criteria in the long term.
2 dirk:
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I'm working completely different , my system's accuracy is about 70% , somethimes even more
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I dont get is? it is or 70% or little more, but how can it be "sometimes even more"? Your number should be based on past performance, so how can it be sometimes even more? Lost you a little here.
So what you say? you do not apply r:r ratio? do you set up a stop? or what you say is: you do set a stop but profits are taken according to how it goes - it may be a short and may be a longer term trade? Well, as I said before in my post, if system provides good % of true signals and rest numbers are good as well, risk reward may even lower than 1 and this aproach will be profitable in the end...i.e. with really good % and data, one may ignore risk and reward figures, and purely follow signals, only adjusting stops...unevitable possibilities for trading style variations are out there, but as long as one is profitable (over proven period of time of course), its probably better for one to stick to THE approach
cheers
Once again, thanks to all for participating. Indeed very useful discussion...
Good Trading !
Rezo