Quote:
Originally Posted by rhodytrader
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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I agree 100%, as I stated below...based off the term "making good trades".
A trader needs to determine, for their trading style, if "making good trades" equals a higher or lower win %. Then based off that win % look at your target profit vs. the stop loss and determin what risk/reward ratio would be the best fit.
If making good trades, shows a steady win rate of 75% .... then 10/25 is fine. And if anyone is doing that...please show me how LOL
I am happy with 50% win but a larger risk/reward ratio.
As always there will be many views on each topic of trading...Read them, Try them, hopefully form your own method that works, then share so others may continue to grow