Risk:rewards

hi all,

does you guys really always acheived a 1:2 or 3 times R:R ratio for your average trade?

I been demo trading 3 months. I do keep a record. I had most of the time realised that my actual average r:r trades is always around 1: 0.7. I do get occasionally 1:1.2

Although for the last 3 months still profit ok(touch wood). I was wondering
will it had any consequences in the future. I do stop if i lose 2 trade. Infact after i lose one trade. I stay way most of the time. unless the second one is a very perfect setup.

reg
vin

For me, it depends…

if the price unable to go further to what I expect. I will then tell myself to walk away with that profits. I do have my daily target which 10-20pips.

sometimes we have to accept the fact whether they market can do 1:3 or not.

Risk/Reward is something that gets a bit too much focus, at least by itself. It’s one of those things which cannot be viewed in isolation because if you don’t know your win% you don’t really know what’s going on.

For example, an average 3:1 reward-to-risk ratio sounds good, but if you only win 25% of the time you are losing money. Similarly, a 1:1 ratio might sound poor, but if your win rate is 70% you’re going to come out way ahead in the long run.

Back by popular demand eh Rhodytrader? Good to see you.

To the original poster, not really. I look for a good [I][B]potential [/B][/I]R:R, but I don’t then set my TP and hope for the best - market gives you what it gives you, sometimes 0.5R sometimes 4R - just depends.