Tell me about stop and reverse strategies

Discussion in 'Strategy Building' started by IronFist, Feb 18, 2018.

  1. Sir,
    Consistency and time to recover from drawdown as 2 most important factors.
    Your last sentence is about that,everything else is secondary.
     
    #21     Feb 19, 2018
  2. maxinger

    maxinger

    It is very difficult to be a successful trader unless
    you are able to detect and take reversal signal confidently and decisively.

    If you miss reversal signal, you will most likely feel very angry/mad/frustrated.
    And you are going to make unwise foolish decision with such negative emotions.
     
    #22     Feb 19, 2018
  3. Depends as per usual, in a range you could get stopped at bottom or top plus entering at the worst spot possible.

    People rarely talk about current market state, trending or ranging, yet it is the key to it all.
     
    #23     Feb 19, 2018
  4. Your reversal could be someone’s pullback trade
     
    #24     Feb 19, 2018
  5. maxinger

    maxinger

    you are right mister. distinction between reversal and pullback (countertrend) signals
    could be rather blurr.

    so we have to take calculated risk and take reversal signal.
     
    #25     Feb 19, 2018
  6. bpr

    bpr

    this is vague ..give me concrete numbers so that I can make sense of this comment ??
    like..
    75% win rate with Risk to Reward 1:1
    or 80% win rate with Risk to Reward 1:0.5
     
    #26     Feb 19, 2018
  7. volpri

    volpri

    80 to 90 win rate with an occasional drop into the 70’s. Average win at least twice the size of the average loss.
     
    #27     Feb 19, 2018
  8. Please stop spreading false hope. This simply isn’t achievable at retail level.
     
    #28     Feb 19, 2018
    treeman, Van_der_Voort_4 and Xela like this.
  9. volpri

    volpri

    ok 50% win rate with average win 1/2 the size of the average loss. That better and more realistic? Lmao
     
    #29     Feb 19, 2018
  10. bpr

    bpr

    as the range is 70 to 90 I will take average 80% winner
    risk to reward 1:2
    your expectancy is ((80*2) - (20 *1))/100 = 1.4

    this system is no better than a system say

    40% win with risk to reward 1:5
    expectancy 1.4

    so you need not necessarily have high win rate. you can arrive at the destination in multiple paths.

    By the way 1.4 expectancy is pretty darn good
     
    #30     Feb 20, 2018