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Weekend Study
Week 2
Risk Management
#Orderflow #ES_F #Trading #3:1 Risk Reward
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Week 2
Risk Management
#Orderflow #ES_F #Trading #3:1 Risk Reward
Like and Retweet for more!
I just did a small experiment to make a point :). Using a 3:1 RR strategy I picked a random crossover study and ran a 100 trades against it. As simple as possible. Results for all to see 
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So what's the point?
Well if I can pick a random strategy in 5 minutes that only wins 25% of the time and still show up with profit what does that say about your results with 40-50% or higher win rates but about the same results?
Well if I can pick a random strategy in 5 minutes that only wins 25% of the time and still show up with profit what does that say about your results with 40-50% or higher win rates but about the same results?
Everyone messes with their stops and targets, all of us do it and probably to our detriment.
How many hours have you spent reading books, studying strategy, how to find magical levels, indicators, on and on?
How many hours have you spent studying risk management?
How many hours have you spent reading books, studying strategy, how to find magical levels, indicators, on and on?
How many hours have you spent studying risk management?
How much greater execution AND reduced stress would your trading be if you had a fixed RR based on setup and you did not touch your stop. After all.. you spent all this time developing a trading strategy, don't you need to know if it actually works?
This weeks challenge is simple. Setup a fixed risk to reward strategy, then trade it. Literally put the trade on and do not touch stops or targets. Let the trade play out. This is the only way you will know if you need to make adjustments to your trade setups.
Also it is perfectly acceptable IMO to have different RR for different setups, for example where you going for a smaller move use something closer to 2:1 (you need a higher win rate on those)
Bonus for folks who actually read this
