Best risk reward forex strategy
- The Complete Guide to Risk Reward Ratio - TradingwithRayner
- Forex Risk Reward Ratio - The Balance
- Risk / Reward - The Holy Grail of Forex Money Management
When we increase the R ratio, we are increasing the avg $ gain of the winning trade vs. a $ loss of a loser, which is great, but we are also decreasing the percentage of winners, which is natural consequence of having the TP level further away. Question is where the optimum lies.
The Complete Guide to Risk Reward Ratio - TradingwithRayner
Very good article Nial, do you think is better to set a trailing stop = stop loss or little bit more and don 8767 t set any take profit, or set always a take profit at 6:8??
Forex Risk Reward Ratio - The Balance
I 8767 ve always benfited from your non-conventional approach to trading forex.
I personally dislike 8775 textbook 8776 theories and concepts which have been over-used such that
they become cliches but do not work well in real life.
Risk / Reward - The Holy Grail of Forex Money Management
When it comes down to it, it is up to you as a trader to figure out what type of risk-reward ratio you want to use. You should try to avoid having your risk be bigger than your reward, particularly if you are a beginner, but there is no particular ratio that works for all traders. The important thing is that you use a ratio that makes sense for your trading style and for market conditions.
Instead, you must combine your risk-reward ratio with your winning rate to know whether you’ll make money in the long run (otherwise known as your expectancy).
This technique is useful for a healthy or weak trend where the price tends to trade beyond the previous swing high before retracing lower (in an uptrend).
For example, to achieve a successful 6:5 trade, you may have several losing trades (I will tell you why), unless you know how to choose the strong trade setups.
Sorry for the typo, as I was saying I love all of you 8767 re articles but this ones golden! I didn 8767 t understand risk reward concept before, but thanx to you, I do now!
The reward to risk ratio ( RRR, or reward risk ratio ) is maybe the most important metric in trading and a trader who understands the RRR can improve his chances of becoming profitable.
Basically, the reward risk ratio measures the distance from your entry to your stop loss and your take profit order and then compares the two distances (the video at the end shows that).
Hi Niall, this is such a useful and well explained article in language that anyone can understand and it so fundamental to the newbie or more experienced trader. Thank you very much.
Thanks for the eye opener. This info is timely and very relevant. Your indepth explanation elaborates clearly the need to take risk analysis seriously but also ensure a trader takes those set ups that are well thought out and executed. Hongera Sana!
If you open a $55,555 account, and make the same 5% profit per month, your account size will be $666, after two years (of course if you don 8767 t withdraw any money for 7 years). Then you can keep on making 5% profit per month, and withdraw $8, every month. That is not bad. Indeed, it is a good monthly income. But the problem is, most of you cannot open a $55,555 account at the beginning.
Pls I have been following you since a month but I want to know which trading app or website you are using and how can I apply the stop loss accurately Pls help us with a video
6. We have already talked about completing the learning stages a lot. You can follow the below posts carefully and you will pass the learning stages easily and without any headache: Become A Profitable Forex Trader In 5 Easy Steps
Let 8767 s first tackle some of the common misconceptions about the RRR to help you understand what most people get wrong before we then dive into the specifics of the RRR and how to use it.
The risk/reward tool in Trading View has been very helpful in formulating and refining my strategy. I am a visual learner so it 8767 s one of my favorite tools.
I am a beginner in trading with a target to become the jack of the trade. As my initial effort, i extensively googled for information on how to trade and what is the logic and strategy behind success. I got lots of manuals and articles from many people which made me feel that i am trying to climb the Mt. Everest. But, When i came across your article i realized that trading isn 8767 t a herculean task. I could feel the confidence within me filling. Believe me, I am kind of addicted to your articles that i read the same articles over and over because each time i read them i can see a smile of confidence on my face. Anyway, i still do have a number of queries. I will be registering to your full course on how to trade very soon. So, do expect a mail from me. :)