What do u think I did wrong?
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Nothing wrong with the trade. The odds played out as they should.
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Donât frame it as being wrong. Losses are a part of the game.
You could improve your odds by using market structure to your advantage for placing your stoploss.
Making sure that the bulls are in control before buying into an unmitigated supply zone would also be helpful.
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how do you know it´s unmitigated?
It was not retested or traded back into until your trade.
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Why do you keep assuming you must have done something wrong, if a trade loses?
It is simply wrong analysis which may happen time to time. Try to take a lesson from your mistake and move on. Learn to take losses as valuable lessons and how to mitigate pain from money loss
No, it isnât. Itâs just a losing trade. It doesnât mean any analysis was wrong. No system gives only winners.
Your thinking is as misguided as xtreme28âs. Why do so many people keep assuming there must have been a âmistakeâ because there was a losing trade?
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Trade entry is the least important metric in a trade. Get past that and realize a 5:1 will lose most the time.
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If you trade with an R of 1:5, thereâs a 50% chance that your first few hundred trades will include somewhere a sequence of 30 or more consecutive losers, and thereâs a 25% chance that theyâll include somewhere a sequence of 36 or more consecutive losers.
This is the inescapable mathematical reality.
Iâve never seen or heard of a retail trader being profitable with an R of 1:5.
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Do you think that 1:5 is good reward ratio? Or there can be better ratios like 1:2 or 1:3? I still canât decide which one is the best?
Three candle bullish pattern
Needed to be swallowed first
The losing streak alone will kill an acct
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There is no âbestâ or optimal R:R.
Instead of a 3:1, how about a 1:3⌠Thatâs what your counterparty is using.
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I think itâs a bad one, and terribly difficult because the losing runs will be so long that youâll never be able to tell whether your systemâs working or not.
With an R of 1:5 thereâs no way to distinguish between a foreseeable, normal, inevitable bad run and a total system failure, until youâve lost loads of money.
Thatâs not my idea of fun.
I donât think thereâs a universal right answer.
It depends on too many variables.
Everyone I know whoâs making a living by trading (not many people) is using 1:1.5 or less.
I use 1:1 or even a bit less.
Hedge fund and institutional traders with high trading frequencies (including scalpers, but others too) are always using something between1: 0.3 and about 1:0.8.
A lower R always makes the equity curve far smoother and the position-sizing far easier and the stress-level far lower.
We all have different degrees of risk aversion, but I wouldnât dream of using 1:5, myself, even if I knew with 100% certainty that my system was 100% robust and would work for ever. But we never really know that?
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