Thursday 30 April 2015

Risk Reward one more note ...

Another advantage of trading RR 1:1 is that if you miss a trade, you have missed a loss or gain of the same amount. In another words does not matter, because your overall gain is not based on few particular trades with RR 1:heaven, which if you are going to miss you are done.

I am spending literally weeks of recalculating real historical performance in terms 'what if ...' and although not sure if this is applicable to everyone, theoretical results kick me back to R1 again, again ...

So, if you have an edge in terms of predicting the market, you are going to earn with R1 nicely. If you don't, there is no Money Management miracle which going to help you. Nor Trade Management with bright ideas as trailing SL, partial profits and similar trials to cover that you don't know ho to evaluate what's going to happen next.

No comments:

Post a Comment