Even though I normally would not answer messages that include accusations and insults, I make an exception here because you brought up a good point which may be a question for others as well. First I answer it in your own manner so you may understand it better. Then I will explain it for others. In summary, you are a real dumb ass if you do not risk to loose 5 points at a very low probability to win one point at a very high probability. Similarly, you are again a real dumb ass if you risk to loose 1 points at a very high probability in order to win 5 points at a very low probability. Thank you anyway for bringing up this point and I know it is hard for you but please try not to be a dumb ass or smart ass. Now explanation for others: There are some very profitable strategies that are based on large number of small wins and small number or large losses. When we analyze viability of a trade, we need to take into account both potential profit or loss and the probability of realizing that profit or loss. You can not look only at the potential profit or loss and determine if the trade is viable. In real life we take huge daily risks for small gains. For example I drive to Starbucks to get a cup of coffee(small gain). Every time we drive we risk our lives. The fact that the probability of getting killed in an accident is so small and the probability of getting the coffee is so high makes this a good trade. On the other extreme, buying a lottery ticket to win $100,000,000 at the risk of losing $1.00 is a bad trade(assuming a few days of dreaming has zero dollar value) because the chance of loosing that dollar is very close to 100% while chance of winning 100,000,000 is extremely close to zero. The "expected" win is only about $.40 (That is about the amount that is returned to people as prizes for each dollar they pay to get the ticket) which is below our break even of $1.00. Having said that, the system that I present here does not always have small wins like today's win. Some of the signals have predetermined targets. If the entry at open is close to target, the potential profit is small. It depends where the market opens. It is up to individual traders to decide what is their profit threshold to enter a trade.
I like to to remove a potential ambiguity with my signals. All trade zones in my signals are exclusive.
This is already a source of entertainment. Hey! I am not your prisoner in Guantanamo Bay or Abu Gharib or Carandiru Penitentiary and you are not my interrogator. Even in the court of law they do not speak to you like that. Reword your questions, I may answer them if I find them legitimate and appropriate.
There is no such thing as a high probability trade set up that warrants risking 5 points to gain 1. That is just so newbie. Even if you could 100% for 8 trades, only two losers would put you negative. If the probability was so high, then why would such a huge stop be needed? Not very high probability at all if you ask me . Let's test it. For each trade you take, I will take the opposite. I will use a 1 point stop and a 5 point target. Let's see who wins.
Scratch that, I'm going to go with a 3/1 ratio, and do the opposite of you. That way I can began this journal ahead. On the first and only trade I made 3 points. Total win= 100% loss = 0% Total profit = +3 points. Doing the exact opposite of the OP I am up = 300%
Unfortunately, we do not have the luxury of counting past actions as profit. If you really want to keep track of any strategy result, state it in advance before the market opens not after you already saw the action. You also have to state your strategy clearly without any ambiguity.
I'm stating for the future, I will continue to take the exact opposite of every trade you make, and I will use a 1 point stop and a 3 point target. Let's see who makes more money. You with your high probability trades and bad money management, or me, taking the opposite side of your high probability trades, with a good risk/ reward ratio. It will be interesting to do, and I'll keep it clean and good natured. It'll be a good exercise. I'm up on you now, but let's track it for a few weeks and see whose ahead then.