What is your Reward ratio and winning ratio of your plan?

Trading Discussion
1

Hello, traders.
All trading plan should have these 2 features.
Reward ratio and Winning ratio.
What do you think about them?

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2

I think it depends on your strategy. Some people have a minimum r:r of 1:3

I would say that’s fair. But for swing traders, your expectations are a lot higher. However, you can’t always just expect to get what you want. You can only get what the market is willing to give. If your expectations happen to exceed that, then you’ll go from in-the-green to in-the-red before you know it.

But if you happen to set a TP within what the market is willing to give, you’re more likely to exit in profit.

3

How about winning ratio?

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4

L:W ratio could be as wide as 6:1, unfortunately. Normally, it would be maybe 3:1

I’m not consistently profitable yet, so this is based on backtests.

How about you? Do you have an minimum r:r? How about a winning ratio?

5

I feel this is one of the traps of failure set win profit/loss ratios every trade placed is unique

6

The r:r on a trade is vital when you are taking an individual trade off a market situation that is unique in time or pattern. So if you’re going to buy based on a MA cross-over or a break-out from a range or a bullish engulfing pattern after a steep downtrend, these things are just going to happen here once, and its now or never to make the money.

But when following a trend, r:r is less important because you have the opportunity to enter the same trade in the same direction repeatedly and frequently.

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7

Both are necessary for the best results. I go for at least 1:2 with a positive winratio.
To be profitable having a good RR can be enough though.

8

I think winning ratio should be at least 1 to 3.
But I want to know whether it is possible.

9

It is possible. Even if you only go for 1:4’s it is possible. It depends on what is satisfying for you.

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10

For me, winning ratio is more important than RR. Strategies with a win ratio below 50% still can be profitable in long term, as @dushimes said, it all depends on strategy, how you build it, how you test it, and how to evaluate it. Regards Greg

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11

They go hand in hand. I’m currently trading a 40% WR strategy and making 1:3 RR per trade pays off my losses

12

I would say risk is the absolute vital factor in money management.

We can never know for sure what the reward is going to be.
For example if you are following a trend - how long will the trend last?

The old adage 'cut your losers and let your winners run’

13

I know what I am about to say will upset a lot of people but the truth is the truth.
I employ no reward ratio in the way many people do. What I do is simply target a monetary figure for each trade for example 40 cents or 60 cents as the case may be. If I make ten trades targeting 60 cents each time that is six dollars on a $100 account.

My winning ration is 100%. period.
Like I said …dont try this at home. And because YOU cant do it doesnt mean another individual cant.
I would post a screenshot of my 19 trades today but I might be accused of showing off again, lol.