hey I'm looking in to trade that has a high probability but it also can lose a lot how would u go ahead and trade it- my win side is 10% my loss is max 100% of the inital cost i can approx 54 trades a year which a few will be losers but i doubt they will be 100% losses there will be around the 50% would u guys do it ? the max loss is also around the 3% of my account value
Personally my trades stats look like 50/50 (profitable losing trades) intraday. But the risk reward ratio saves me. In scalping I have 80/20 approximately
The critical component to your trade should be... "What trade to make, where, and why"? Then risk a small amount to potentially make 3x that or more. With an option, 2 logical strategies.... #1, risk the entire premium. #2, stop out at 50% loss of the premium. Both are arbitrary plays. IOW... you have to guess. The option play is a "guess all around", so it's important that you make a logical play at a logical place in the chart.
In what format would you like to work? What are your plans? Would be interesting probably. But I steel need to clear my plans and understand how much time I have for trading in foreseeable future.