Has anyone come across any EA/Trader that can trade 1:3 (Risk to Reward ratio). 1:3 - 1:4 - 1:5 - 1:6 any of those would do the job.
But no less than 1:3 ratio.
EXAMPLE of 1:3 RR;
Both the above are 1:3. So whatever the SL x3 will be the TP
not an answer to your question (sorry!) but why is a R:R of 1:3+ a system selection parameter, for you?
absolutely no criticism or disrespect implied at all, in asking the question above, but you’re actually asking something that relates to an inexperienced trader’s approach, and i’m wondering whether you’ve read, or been told, something very inappropriate - i know it’s a widespread and very mistaken belief that higher R:R ratios are necessarily better
the reality’s very different - such methods have low win-rates and that makes position-sizing terribly difficult for inexperienced traders to handle
a system with a 1:3 R:R and a win-rate just over 25% is the same, in profit factor, as one with a 1:1 R:R and a win rate just over 50%, in theory and in abstract, but in practice an inexperienced trader’s very likely to cope with one far, far better than with the other, and that in turn is very likely to make the difference between profit and loss, between a successful and an unsuccessful start
all the career traders i know have R:Rs of well under 1:3 - and although that observation may not be a universal one among successful traders here, i still think it illustrates what a statistician would call a “survivorship bias”
just something to think about, perhaps?
Check this.
The risk to reward is 1:3.
i agree with flamingoproxy. to become a profitable trader over time, you only need to win 50% of your trades taken at a 1:2 risk to reward. this will make you succesful
If you can win 50% of trades with a 1:2 RRR, you’ll own the world in a year. That’s insane return… what makes you think the market is so ineffecient that you can pull an extra 25% edge on it?
A 1:2 Risk to Reward only wins 25% of the time… idk where you get 50% from…