Thread: Risk/reward
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Old 07-03-2008, 01:12 PM
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rhodytrader rhodytrader is offline
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Quote:
Originally Posted by mtandk0614 View Post
If your system does not work with a 2:1 ratio....I would suggest you change your system.
Again, it's both sides of the equation that matter. Some systems have above 50/50 win rates, but low w/l ratios, while others have sub-50/50 win rates, but high w/l ratios. Expectancy takes both measures and tells you want you would make on an average trade. Use that as your measure and combine it with how often you get trade signals to know how good any system really is.
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