FOT. A term I coined. Not on Google that I know of but in my journal a plenty. It stands for Frequency Of Trades.
I have no dog in this fight but I am the only one who understands you here. Try it, you will like it.
Pretty much sums up the philosophy. As usual, there are more than one way to skin a cat and one can make money with R:R of 10:1, 1:1 or 0.5:1... The devil is in the details. I sim both >> 1:1 and < 1:1. Both were profitable, it is a fielder's choice.
Here is a concept: "The only reason a trader loses big or has a huge down day is because he allows it to happen." We do in fact create our own reality in the market. We either develop strategies and techniques to correct our decisions when we ARE wrong and develop correct techniques to apply when we ARE right or we succumb to emotional roller coaster rides based upon hope, fear, greed. Granted trader has to have an account capitalized enough to implement any strategies or techniques he develops and employs in his trading. NO TECHNIQUES, NO DISCIPLINE, NO MONEY = NO DEAL
Only employ techniques you can afford to employ. A trader may have a good technique but not have the funds to successfully use the technique. It will likely lead to a blown account.
As a scalper it is easy to win more often that not just employ techniques that correct mistakes and recover losses quickly. In the ES for instance a scalp has at least 81 opportunities on a 5m chart to make or lose money. Dial down to 1m or 2m chart and the opportunities increase dramatically. Bit only if a scalper does not believe in noise but does in fact believe that any market scenario that appears can be an opportunity to make or lose money. To make money or lose money scalping prices have to move up or down. And that they will. Or there will be no market. Price action is simply any move in price or it will be price inaction. A one tick move is PA. A 20 point move is PA. For me as a PA trader and scalper I see a 1 point in the ES as a minimum move I want to capture so I try to anticipate such a move and take a position. Should it fail to materialize then what will I do? That depends on the techniques I have developed for myself to employ in PA moves IN MY FAVOR AND WHEN IT MOVES AGAINST MY FAVOR.
I think he is alluding to the fact of them "sticking together"?? They prefer to be called Travelers. I have a few such friends.
How can you guys even calculate risk reward when none of you understand price action? I mean just because you make your top box bigger than your bottom box doesn't mean price is going there. So you may think you're getting 2:1 reward, but in reality you're just getting 0:1 Iron chef gets it!