a qüestion for profesional traders

Discussion in 'Trading' started by cataloniafree, Aug 30, 2006.

  1. What rato win/loss you used,and what fiability you obtain.

    I think respected your ratio is the more important objective to have good trades.

    I have a ratio 3(target)/1 (stop) and 50% fiability
  2. not really.

    Think about what kind of a turnover you can with a 1/3 risk/reward. Not much I would say. You'll be waiting way too long to take a 50% chance at a trade.

    If you're a daytrader you gotta keep on moving and constantly be making money. For that all it means is that you are swinging and is keeping on swinging.
  3. Then that ratio risk / remuneration me believes that it is the best?

    Or me aconsejaria not to have ratio/recompensa predetermined.

    When I do trading without ratio risk / remuneration always I fa
  4. You're going to see a wide range of values because of the many different trading styles out there. A position trader's numbers are going to look much different than a short-term trader's. One can be profitable across a range of ratios/probabilities.

    It's more important that you find a style of trading that suits your personality and situation (i.e., the time and capital you have available for trading), and then develop a strategy which yields a positive expectancy based on the risk/reward ratio and probability of success.
  5. yes, i´m daytrader.
    And i make scalpping with a stop very small.

    I can make 10 or 15 trades every day in a future spanish market.

    I not understand very well.

    If i Trade a market don´t used a small stop i always failure.

    Before,I wanted a ratio risk /recompense 1/1 with a fiability bigger than 50%, about 60% or 70%,but sometimes i was not respecting mi stop.
  6. Hi Jango, Think that i ´ve a strategy with positive expectancy and I find very good with my strategy because it´s a very agressive like my way of seeing the market.

    But maybe the old traders don´t used this strategy,maybe they don´t used stops.

    I like know if the professionals traders use for scallping the ratio win/loss or not use.
  7. do i read the title right, a 'qweestion'?
  8. european keyboards...
  9. Good entries, good exits (the best exit may be a small loss at times). Positive expectations, sure, but the win/loss ratio can be really skewed (and "screwed" I guess, LOL)....if you let losses run too far, of course.

    Many do well with a 50/50 win loss ....bigger wins, smaller losses.

    When trading market neutral, many more factors come in to play.


  10. It sounds like you have mostly winners if you trade without a stop, but you're experiencing an occasional big loser that's wiping out your gains -- is that correct?

    Do you like scalping? Do you feel like it's a good match for your personality and situation?

    If you're not respecting your stops, that's a separate issue from having a strategy that works for you. Sometimes there is a big gap between knowing how to make money and actually doing it on a consistent basis. Learning to take a losing trade gracefully is really hard to do, and I think it's even harder if you have a high winning percentage.

    I plan trades with a risk/reward factor of approximately 1 / 1.25, and I have around 85% net positive trades. Not respecting my stops was a problem, but I've worked hard to think of losing trades in objective terms. I decided I want to behave like a professional and treat trading as seriously as I treat my other business. I decided that my trading capital is more important to me than being right about any one trade. I realized that I would miss several winning trades while my attention was tied up with waiting for a loser to come back. I tend toward perfectionism, but now I understand that it's a characteristic which doesn't benefit me at all in trading.

    On a technical note, I don't know how you are determining your stops at the moment, but I would recommend you consider using a short-term average true range (ATR) value to place stops outside the noise of the market. Unless there's an obvious key support/resistance level nearby, it's a much better method than eyeballing the chart or choosing an arbitrary number of ticks. If you're unsure of your ability to respect mental stops, then it's really important to put stop orders out there.

    I wasted a lot of time trying to trade differently than the style that comes naturally to me. The bottom line is that you want to enjoy the way you spend your days, sleep soundly at night, not put your trading capital at undue risk, and end the day with a profit (listed in order of importance, IMO).

    Good luck.

    #10     Aug 30, 2006