Help with Risk Reward

Discussion in 'Risk Management' started by jennywestwong, May 28, 2021.

  1. Tradex

    Tradex

    Higher time frames are more profitable ?!?
    Who told you that?

    Yes.

    Yes and no.

    If you are trend-following, setting an artificial target will severely limit your profits in the long run.

    There is no such thing as a "reasonable" stop. Your optimal stop must be dictated by your backtest, period.
     
    #11     May 28, 2021
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  2. Dustin

    Dustin

    1. Big swings are multi-day (ideally 2-4 days). I've had a number of six-figure trades the past year in that timeframe.
    3. By setting targets I mean at least having some idea of where to exit a winner so you aren't left holding the bag.
    4. As a manual trader, there is nothing for me to backtest. A reasonable stop is a mental spot where the trade looks broken, and you wouldn't re-enter.
     
    #12     May 28, 2021
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  3. Tradex

    Tradex

    Making millions or even billions on a higher time frame still does not prove that it is more profitable in the long run, versus day-trading for instance, on a risk-adjusted basis, all things being equal (same starting capital and same trading system).

    Trading is not about having "some" ideas of where to exit a profitable position, it's about exiting at the OPTIMAL level/price.


    So I assume you are a "discretionary" trader, and since your trading rules are not clearly defined, you will never be able to find the OPTIMAL entry and exit for your particular trading system.
     
    Last edited: May 28, 2021
    #13     May 28, 2021
  4. Dustin

    Dustin

    You and I have very different ideas about what it means to trade successfully. You seem to think there are black and white rules, but for me trading is an art form. I'm constantly adjusting to market conditions without set rules, just experience to guide.

    Here's today, obviously my methods work.
    fri.PNG
     
    #14     May 28, 2021
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  5. Tradex

    Tradex

    Trading is not about having "ideas" and "opinions", it's all about trading the optimal risk-adjusted system with minimal volatility (drawdown).

    In other words, it's all about facts.

    Even losing systems can work for a while.

    Can you show us your last 5 000 trades and the drawdown... ? :cool:
     
    Last edited: May 28, 2021
    #15     May 28, 2021
    SimpleMeLike likes this.
  6. SunTrader

    SunTrader

    Optimally yes. Realistically no.
     
    #16     May 28, 2021
    murray t turtle likes this.
  7. Tradex

    Tradex

    ??

    You are Ok, SunTrader...? :D
     
    #17     May 28, 2021
  8. Dustin

    Dustin

    I haven't had a losing year in 23 years of full time trading. You can have your opinions, I'll keep mine.
     
    #18     May 28, 2021
  9. Craig66

    Craig66

    LOL, multi-decade successful trader tries to help. Newb idiot tells him he's full of it.
    ET in a nutshell.
     
    #19     May 28, 2021
    comagnum, Arnie and SimpleMeLike like this.
  10. Tradex

    Tradex

    Good for you, but you would probably have tripled your money had you simply traded the optimal entry/exit parameters for your particular trading system.

    Think about it for a second.
     
    #20     May 28, 2021