Success in life and in Trading

2:1 or 3:1 or 5:1 RR are better goals for each trade. Then you can get away with a win rate of below 50%.

High win rates are very hard to achieve because most price movements are very noisy. But every now and then the market moves bigly.

But still everyone wants high win rates.

 

They inspired me a lot when I think about to win in my life. Great people.

 

Hello Overnight,

Whats up good buddy.

You nailed it buddy. You nailed. Risk = Reward, and a fixed daily goal of $100. I have learned over time, simplicity is freedom. Simplicity is wise. Wanting more comes with stress. Contentment is trumps everything.

Full Disclaimer: I am ONLY a consistent profitable trader for 2 months now. Please see my comments as my opinions only. I have zero proof of anything I say longer than 2 months. My comments are probably worth a penny with a hole in it or the dog poop at the dog park.

 

Have you achieved so little that the best you can do is belittle everything in your reach? Sad little man you are.

 

Only the Paranoid Survive , title of a book by Andrew Grove, is a worthy piece of advice.

Grove was the founder of Intel co. The book published in 1988 is still in print. Unfortunately. Intel nowadays seems to have forgotten the lessons of its founder.

 

In my humble experience, a higher RR does not = a better strategy on its own. Higher RR is simply offset by lower probability of turning into a profit, that's all.

 

"They" must not of the Tolstoy short story of "How much land does a man need?"

 

1:1 RR and a 65% win rate. And around one trade per day.

Is a holy grail trading system.

If i had that system for any liquid market I would be a very happy man.

That system has as Kelly optimal bet fraction of 30%, that is how good it is. Will make you rich very quick even betting at half Kelly.

Sadly such systems don't exist, or at least i haven't been able to find anything that consistently good..

 

My point was rather that, blindly having higher RR does not make your strategy better.

If you have a 1:1 RR and win 6 times out of 10, then having a 1:2 RR will net you no more than 3 wins per 10 with the same strategy. There's no edge in simply lifting RR.

There IS edge, however, in higher RR but in a completely different manner. It's about knowing WHEN it makes sense to have higher RR and when it makes sense to have a lower one.

 

I would caution developing traders to not conclude what is possible by another's experiences or views.