The alternative way, is to do exactly what I described.
Low Hit rate, but with HUGE RR, like 10:1 +
Or High Hit rate, but with Low RR, inverse RR such as 0.5:1
How often do you sit watching the market oscillate around, knowing pretty well where it will highly likely move to, but you don’t take the trade cos you can’t frame a decent RR? What if you were happy to take 0.5 (or even less) rr on a trade? You would take a hell of a lot more trades, and you would almost always win, right?
But we don’t do that. Instead, we sit like muppets predicting the market but not getting anything out of it, cos we can’t get what seems like a clear 2:1 or 3:1 rr.
Conversely. How many retail traders do you think pull their stop losses, and let their losers run, in the hope it comes back to their break even point? Often, the retail trader will get away with this practice…until the time the market just doesn’t look back and they end up blowing up their account. Every retailer will do this at some point, especially early on in their trading career. This is the wrong side of a Low Hit Rate, HIGH RR strategy, and is the mainstay of forex broker profits.
Ask any broker. They will tell you. Retailer traders cut their wins short, but let their losses run.
