How many winning trades do you require for a system to be the one?

Beginner Questions
27

Really excellent idea! :sunglasses:

2 Likes
28

If the win ratio is close to 80% ( I know it sound a bit high), that is the one.

29

Okay. My strategy is trend trading the IKH. set up of 8-22-44 which caters for a 5 day week. (The original IKH set up 9-26-52 was for a 7 day week in Japan). IMO,any new trader that opens the IKH on their platform needs to follow this 5 day set up for better accuracy.

All my trend trades now follow the weekly chart candle price movement. However, to ensure that I have chosen the right trend trade, the 4h lower time frame (or the daily chart Time frame) must be in synch which is essential, because it is then probable that the price trend would continue.

While it seems difficult to take it all in, it takes me a few minutes to decide whether to trade or not. As an aside only buying trades above the IKH cloud and only selling trades below the cloud.

hope that helps.

2 Likes
30

Well ok than let’s agree to disagree. Even if the strategy that you’ve developed doesn’t match the expectancy which you had from it but still has a higher win-ratio comparing to its losses, then IT IS FUNCTIONAL. It’s like writing a bad code but it is functional for god knows why reasons. IT IS STILL FUNCTIONAL. So I can’t really find your argue here!

31

Then again for you as well my friend, if a strategy has a higher win ratio, the R can be managed with various other factors like leverage, bonus, margin at stake bla bla bla. Btw if you want to test a strategy ,you’re not gonna test it on a real account will ya? So you test it with a demo account and conclude the results, if it has a high win ratio, now you find a way to manage your risk-reward ratio.

32

Win & Loss % are correlated to R-Multiple
Forex R-Multiple & Win/Loss Correlation Table

No way to adjust R:R & win % separate from each other.

33

Lol dude you just agreed with my comment and agreed with another comment which exactly means the same as mine? :smiley: what is your sense-full idea on this? how about sharing your thoughts instead of just disagreeing with others?

1 Like
34

Some people appear almost “determined” not to understand this. Maybe this will help them?

reward-risk
reward-risk794×544 64.1 KB

5 Likes
35

I don’t think there is any “the one” strategy.
I like the idea of mastering a few of them so that when I’m in the mood to scalp or when I’m in the mood to swing I can look for the setups and enter accordingly.

I go back to my theory that most strategies work, they just need to be mastered. This is something I think most anyone can do.

The perfect strategy, the holy Grail, is like searching for something that probably doesn’t exist.

And I still like EMA crossovers :grinning:

2 Likes
36

I will advice you follow the W1 time frame that will make you identify the weekly trend the best time to enter the market is Mondays and make sure you don’t miss Monday’s trades. If you do, you will have to wait till another Monday.

Note: You follow W1 to identify Trend for the week then you use H1 to enter the market

1 Like
37

Thanks for the responses everyooone! :blush: I really appreciate it. :blush: I’ll be reading through them and replying with possibly more questions and clarifications. :sweat_smile: Please bear with me. :pray:

38

Thanks for this! :blush: Simple and easy to understand. :smiley: I guess my question is, does that amount of the win matter? :open_mouth: Like for example, I got 2 winning trades. But each were just 25 pips compared to 1 loss that I got but it’s a 45 pip loss.

39

Thank youuu! :smiley: That makes sense. But for a part-time trader like me, 200+ traders would really take a while since I usually take 1-2 trades per week. :open_mouth: Would it be unreliable there are a bit less trades than the 200+? :open_mouth:

40

Thanks Phonix! :blush: I guess I have the same question for you as the one I had for DaddyPL. :open_mouth: Does the amount of pips won/lost matter?

41

Thanks for the reco steve! :blush: Actually, I’ve noticed that a lot more people here have been using Ichimoku. But I’m a bit intimidated by it. :sweat_smile: Do you have a trading journal for this strategy? :open_mouth: Maybe I can follow your trades for now before trying it out myself! :smiley:

42

Thanks for this perspective too, Truncated! :blush:

I’ve looked this up and saw the formula for this, but I’ve also found a calculator! I’ll check it out. :blush: Would be nice though if there’s also an expectancy calculator available here on babypips so I don’t have to go to different sites. :sweat_smile: :pray:

43

Thanks for this ayo! :blush: Do you have a typical number of trades you use as a basis for this? :smiley:

44

My question too. My EA performs well on strategy tester. At this moment I only consider settings where of course rhere is a neat profit but far more inportant: has the lowest value for drawdown. I want the drawdown to be less then my starting value.

45

Of course it matters. But first shouldn’t we know why the profits were so low but the loss was double the amount. What did you do wrong in the strategy that made the results this way. You didn’t optimize the same risk-reward ratio for all of them?

46

I really appreciate the picture. The more I look at this, the more it makes sense and the more I get!