High Probability Low-Risk Set Up

Discussion in 'Technical Analysis' started by sunnyskies, May 16, 2004.

  1. Haha, made you look! Anyhow, how often have you heard this cliche "High Probability Low-Risk Set Ups". Let me expose the BS in it. Mathematically.... If you have a high win%, you're NOT going to have a high avg. win/avg. loss ratio. Vica Versa, if you have a fat avg. win/avg. loss ratio - you're NOT gonna have a high win %. "High Probability, "low-risk"" exist only in promotional materials of snake-oilers.
  2. Bob111


    75% + wins with 10% average good enough? 1000+ trades on nasdaq over last 10 years.
  3. OK sunny. Is wasting peoples time sufficiently rewarding to make up for exposing yourself as another of elite traders halfwits?

    In what way do you think you exposed the bs in anything? Perhaps you might spend some time reading your math text books to get an idea of what a proof might look like.
  4. Position Size Managment blows your Theory!

    Michael B.

  5. Exactly.
    But let me expound on what kiwi_trader said.....

    The phrase: High Probability Low-Risk Set Ups does not <b>necessarily</b> imply anything about average wins/losses or % wins/losses. It simply means what it states.
  6. Haha dummies. You're just pissed I Made you look.

    Anyhow, "high probability" means high winning %, OK? Get it?

    "Low-risk" means your stop is small compared to something... Now.. compared to what? Use your brain now... COmpared to average profit. So that means a high Avg. Win / Avg. Loss ratio.