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Risktoreward

USDCAD - PERFECT Bullish Flag - Trend ContinuationHi Traders! The market is in a healthy uptrend. As you can see, the market has risen strongly. It is making big trend moves and then some midterm retracement moves. Now the market is in a retracement move. It is at a resistance, but higher lows are coming in. That means that the traders are ready to buy the market. This creates an ascending triangle. If we put all these information together, we can see that the market has formed a bullish flag. So, because of the higher lows we can have a smaller Stop Loss and a greater risk-to-reward ratio. Out target is at the same height as from the last swing. We recommend to buy the breakout with a small SL and a RTR of 1 to 4. Thanks and good luck :)!
Long
by swissmoneymakers
AUDUSD Long Bias Trade Plan and IdeaTraders are in big-time risk aversion mode as more bad news on the Coronavirus outbreak continues to hit the wires. Most notable that seems to have traders running to safe havens. Safe havens like the Greenback have already benefited in the session, while risk currencies like the Aussie (and the major currency most likely affected by this outbreak given Australia’s strong economic ties with China). AUD/USD which has already made more than a full daily ATR move lower since the week open (0.6814) before bottoming out around 0.6765. This week, the US Federal Reserve is scheduled to have its first meeting this year and expected to decide on its monetary policy. The key interest rate will apparently remain intact, but that’s not 100%. One for the more prudent traders who like to go after higher risk-to-reward returns on this major pair will not hesitate to risk and we all know "No pain... No gain! meaning no risk no profit!"
Long
by jessi061
Bankroll and Risk Management, Risk to Reward Ratio - EDUCATIONALIn this example I am showing you how important is RIsk Management in your trading system. You could be the most talented trader in the world with a natural eye for investment opportunities, and still blow your account with one bad call without proper risk management. No matter how good you are, or how experienced you are, you’re still going to incur losses. Even the best traders in the world suffer losing trades - it’s part and parcel of trading. That’s why risk management is so important to your trading. One way that you could strike the right balance between reward and risk is to stick to a reward:risk ratio such as 2:1 or even 3:1, where your targeted profits are always double that of your maximum losses. So even if you suffer three losing trades, you’ll only need two profitable ones to ensure your total profits outnumber your losses if you stick to this reward:risk ratio. Although it’s not a general rule to follow, it can help you to visualise a specific approach to risk management. "It's not important whether you are right or wrong. It's about how much money you make." That means that you can still win 4/6 trade and you are still loosing money. In the example showed you can see that investing different amount of money in each trade can drive to a negative ROI even if yours winning rate is over 66% .
Education
by wolf-lamb
5
MNK: DEAT CAT BOUNCE OPPORTUNITYMNK is dead or almost dead. Often times there is a dead cat bounce in stocks like these, as 'everybody' gets the same idea to throw some money at it. This is a high risk scenario but with potentially good risk to reward ratios. Disclaimers : I've clearly said this is high risk. This not advice to trade in securities. I am simply showing what may happen from a perspective of speculative opinion only. Your losses are your own if you enter a trade on this. Kindly sue yourself if you lose your money.
MLong
by Captain_Walker
2
How can 90% fail? Delusional and lacking a pair.You might have heard stories of people that were looking for really bad traders so they could do the exact opposite. There was some guy that had a bot that would look at twitter bets and come up with a rr and wr, he was trying to sell that to a quant fund a few years ago. There sometimes are some people crying about really awful signal providers, something like .2 RR and 60% winrate. I just do not understand, they're pretty dense. I hear something like this my first reaction is to run to this guy and "SHUT UP AND TAKE MY MONEY". You're looking at a 5 RR and 40% winrate! Just take my money man. Imagine you could find the worse trader in the world, world's biggest twat. You just found the holy grail. Just fingers crossed he doesn't improve. I keep coming across this story... A few years ago (Data from a major FX broker* across 15 most traded currency pairs from 3/1/2014 to 3/31/2015) a broker looked at 43 million trades. What they found really makes you wonder... On all 15 pairs, their noobs have over 50% winrate, with the lowest AUDJPY with barely over 50% and the highest EURAUD with a little over 60% winrate (euro pairs had 61% on average). And you guessed it, all of their losers are significantly bigger than their winners. Eyeballing it I'd say they are all between 50% and 100% bigger. Their average wins and losses are all something like half a daily ATR, so OF COURSE, the majority of these **** HAD to be daytraders. Go figure. For example, on the gbpusd, their winrate was 59%, they made an average 43 pip profit on each winner and lost 83 pips on losing trades. So a rr of 0,518. You see where this is going :D Let's flip it! Say that including spread = they lose 45 and make 81. RR = 1,8. And winrate is 41%. The breakeven point is (as long as the risk is low enough...) 35.7% winrate. The average day trading loser, well not loser, the average period, is 15% above breakeven. This is not even the average for losers, it is counting winners. So they are doing even worse/better. If they weren't such **** and went for bigger timeframes, with everything else kept same (they probably follow some dumb mecanical strategy they found from an internet troll), as so the stats are the same but spreads are insignificant; Then we would be looking, flipped, at a RR of 84/42 = 2. With 41% WR. 41/33.33 = 23% better. Quite an edge! They wouldn't even need to make much of an effort. They already have a big edge. Just flipping what they do, no hard research required, no sweat. EASY. Crazy. No to say bigger winners than losers is the only way to go, but in this case... clearly they could be very profitable just by doing the exact opposite of what they usually do... Why aren't all these losers becoming winners? I'll tell you why I think it's not happening, other than because they are stupid of course. 1- They are greedy and want to grow fast from day 1, so they blow up and never are in long enough to get any feedback or learn anything. 2- They are lazy and so don't look back on their trades. They just can't be bothered holding a journal, backtesting strategies, nothing. 3- They care what other clowns on twitter and crypto forums think, and need to grow a pair. So you see, it's pretty much IMPOSSIBLE not to be profitable if you really want to. IMPOSSIBLE. If you are at breakeven and think "I am almost there" I am sorry but I have bad news for you... It's easier to go from consistently losing trader (if you are able to do what it takes), than breakeven where there is no edge (unless you just practice self sabotage). I've heard of absolute clowns, that were surprised when someone threw their own numbers back at them showing that they were losing more than winning. If I was training someone at a firm or whatever I'd get fired because when I'd see someone that is not even aware he lost money in the past 6 months I'd just slap the ****. I am actually surprised how big the edge is... Pleasantly surprised, especially by the fact that anyone could make it but they are too lazy and too weak. Also, it is common to hear that in prop firms, every one gets the same equipement and training and learn the exact same strategies when they start and still 5-10% make it and the rest fails. Strategies can stop working, and it is worrying, but what makes a difference is YOU, as a person. Your edge is YOU, not your strategy or screens. That's an investment for life. As long as you get good, and can adapt, you will almost certainly always be able to extract money from markets.
Education
by MrRenev
4
Ambitious Trade on Bitcoin!Bitcoin is testing an important support and buyers didn't miss the opportunity. As you can see, the price is going up with a strong action by buyers. The market is still down, in my opinion, so I'm waiting for a good opportunity to enter my short position. My trading idea is to let buyers push the price higher for now and start to sell around $10200, where we have a nice area where usually buyers and sellers attempt to take control of the market. Once we get our entry, it is easier to place stop loss and take profit. Stop loss above last important swing high and take profit trading the breakout of the support and applying the measured move to calculate the best area for it. The risk to reward ratio is very appealing, so I don't want to miss this trading opportunity :)
COINBASE:BTCUSDShort
by FedericoSellitti
2
Bearish engulfing barBearish engulfing bar on H4 as well as D1 (see link for D1 view ) Both sell signals located around areas of value. Trading the engulfing bar usually offers a strong risk to reward ratio and in this case the provisional target is 3 times that of the risk (and price could fall more after that which will increase the reward substantially against the initial risk... Don't invest what you can't afford to lose. This is not investment advice. Subjective view/report of a financial product only. You can learn price action trading at no cost. Join my mailing list to receive more information zc.vg Join me in Forex Bootcamp for live updates using the link below. DISCLAIMER All information published within this website is purely for educational purposes and offers no guarantees. Profit Fx, Forex Bootcamp and any of its associates cannot be held responsible for any trades that you have executed in any way whatsoever. Please familiarize yourself with the relevant risks involved when trading forex, CFD’s and other products. Any trading is done solely at your own risk. Profit Fx, Forex Bootcamp and any of its associates are in no way employed by any broker or any other legal entity. All information published within this website does not constitute advice, but rather objective information about a financial product and analysis or report of a financial product.
Short
by Cmasterza
DOLLAR-CAD LONG TERM SHORT ????On the Daily Chart, we got a break and retest of the ascending channel. This suggests that we may head lower with some bearish momentum . Going down to the 4 Hour Chart, we can see that there was a perfect test of the .786 Fib level (from most previous swing high to swing low), however price was trapped in the zone between 1.3333 and 1.3276, so if there is a break and close below 1.3276, we can expect the bears to come in the market with strong bearish momentum. * If you want to learn more about the .786 fib strategy, you can send me a message,
Short
by knibbofx