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Business Mind
- Thread starter DR.BOUYE
- Start date
insufficient information
plus I would divide it up
sound business - what is the business?
and financial sense - applies to different business models and situations.
There are way more moving parts and influences in the real world plus its a single data point.
Ok, let's look at this from the perspective of trading as a business. The above op data illustrates what the proprietor must achieve in order to turn a profit and succeed within their chosen field.
Compared to any other business models that you may be familiar with, would you consider the proposed margins as reasonable?
yes, if you can show that you can capture that in a sufficient win loss ratio. Only a history of actual trades will show this. Positive expectancy etc; etc;
However my 2 cents, I personally dont think the ratio is enough as there is little margin for error. Especially if human discretion is involved as this lets most folks down.
However my 2 cents, I personally dont think the ratio is enough as there is little margin for error. Especially if human discretion is involved as this lets most folks down.
yes, if you can show that you can capture that in a sufficient win loss ratio. Only a history of actual trades will show this. Positive expectancy etc; etc;
However my 2 cents, I personally dont think the ratio is enough as there is little margin for error. Especially if human discretion is involved as this lets most folks down.
The RISK:REWARD ratio. The market parameters in question equate to a R:R ratio of 1.00:1.25. At first glance this may appear to be fairly reasonable, the proprietor will speculate with an initial outlay of 1.00 to accumulate a profit of 1.00, plus an additional 0.25 to cover costs.
Q. What is the industry standard and most logical method used to formulate the RISK:REWARD ratio?
As an aside, the style and context of this thread will be purposely put forward in a basic and simplistic context. The underlying reason for this is as follows, the methods and practices aimed towards the retail sector appear to be failing at an alarming rate. One can only conclude that the basic principles and philosophies of retail sector trading are inherently corrupt to the point of being obsolete.
Q. What is the industry standard and most logical method used to formulate the RISK:REWARD ratio?
The Sharpe Ratio remains the standard, despite the criticism of its properties by some market practitioners.
4.25 LIMIT SELL
3.00 LIMIT BUY ORDER
2.00 STOP ORDER
Q. Take into consideration the above market, do the applied parameters make for sound business and financial sense?
No. There is nothing in there that constitutes an "edge".
The Sharpe Ratio remains the standard, despite the criticism of its properties by some market practitioners.
No. There is nothing in there that constitutes an "edge".
By your definition, there is no way of profiting from any given market?