Discussion in 'Index Futures' started by Swan Noir, Nov 19, 2009.
Thank you Dreamer. Expectancy is the key.
If you are going for average 7 ticks you are paying 13% commission.
Thatâs a lot to overcome.
Depends on your win loss ratio and your risk reward ratio.
If you are going to risk 12 ticks to make 8 you need 65% win ratio to break even.
If you are risking 8 ticks to make 8 your have to win 56% to break even.
If you are risking 4 ticks to make 8 your have to win 41% to break even.
Just make sure your risk is less than or equal to your reward. For example, if you're scalping for 1/2 pts you have to puke 1/2 pts as well. If your W/L ratio is better to the winning side you make $.
On 11/20 in this thread Dreamer said: "Only thing that matters is expectancy".
He is 100% correct.
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