Quote:
Originally Posted by o990l6mh
What risk to reward do you employ?
Winning 90% of trades is no good if the 10% losers are so big that they eat up the profits from the 90%
Profit factor = (win trades % x reward) / (loss trades% x risk)
E.g.
60% x 50 pips = 0.6 x 50 = 30
40% x 100 pips = 0.4 x 100 = 40
Profit factor = 30/40 = 0.75
This example shows that every 1$ would return only 75 cents.
If the profit factor is 1 or more, then your trading method is profitable.
This kind of money and risk management is paramount. Good luck.
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ok this is were most investors would run a mile
i risk £300= i bet £10 per point which is equivalent to 30 pip stop loss
my strategy is based on breakouts
i place a 5 pip trailing stop and i let it run
the average win trade for the last 6 months 14.2 pips per trade TOTAL WIN 111 DAYS
average loss 30 pips total TOTAL LOSS = 2 DAYS