Intraday Risk:Reward ratios for ES/NQ

Discussion in 'Index Futures' started by Remiraz, Jul 20, 2005.

  1. Remiraz


    What are realistic Risk:Reward ratios for ES/NQ, assuming we want a Reward > Risk system.

    Is it possible still to get higher than 1:3 Risk:Reward trades with any kind of frequency nowadays? (say 5 or so in a month)

    Is 1:4 realistic? 1 NQ pt loss vs 4 NQ pt gain...hmmm.
  2. milstar


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  3. Most successful traders I know don't use risk:reward ratios.

    However, they are heavy into money management, risk control and/or positions size management.

  4. Remiraz


    I see...thanks.
  5. Remiraz,
    To answer your question NQ Futures

    Yes 1:3 is possible,

    Usually for me its around 1.5 Stop , 4.5 Reward

    .5 For slippage, so

    2 points Stop, 4.5+ Reward

    If It doesn't have this type of reward, such as
    1 point away from a pivot point, I won't trade it.
  6. Remiraz


    The slippage/spread/comms really act like the House Edge doesn't it? 1.5 to 4.5 is 1:3. But adding spread/slippage/comms it becomes 2 to 4.5 or 1:2.25.
  7. Pretty much,
    Either you SCALP where your risk is tick for tick

    Or you expand your risk reward so it pays for the commissions,
    In the futures trading , Just entering a trade, you've just lost $50 with a 1.5 point stop ( 3 ticks).

    As they say futures trading is a losers game NEGATIVE sum. :D