Frequent small profits, rare large losses...

[Visaria]

Please enlighten us simple folk.

In my world, if my average winners are 20x my average losers and my win rate is 10%, I crush it.

Would work v well. You are on the right track.

 

[Visaria]

If anyone is wondering how to make 20x risk, consider first of all having a much larger position when right compared to when wrong. How? Well, consider the notion of adding to winning positions. Now consider managing that risk in some fashion.

My Xmas gift! Ho-ho-ho!

 

[algofy]

Would work v well. You are on the right track.

Galvin says I'm an idiot....I'm confused

 

[ironchef]

galvinlee888, CyJackX, Visaria,

Merry Christmas and Happy New Year.

 

[algofy]

galvinlee888, CyJackX, Visaria,

Merry Christmas and Happy New Year.

no love?

 

[ironchef]

no love?

You are OK too. Anyone eager to learn will do well, you just have to read their posts very carefully and put your thinking hat on.

Merry Christmas and happy New Year to you too.

 

[CyJackX]

If anyone is wondering how to make 20x risk, consider first of all having a much larger position when right compared to when wrong. How? Well, consider the notion of adding to winning positions. Now consider managing that risk in some fashion.

My Xmas gift! Ho-ho-ho!

Now, would you consider scaling in all one trade? Because you could also conceptualize each addition as a new trade. And does it make a difference?

If I normally do 1 lot, and if I buy 2 lots and sell 2 lots, did I do the same trade twice or did I do one trade twice as big? Does scaling out drastically change this conceptual gymnastics? Does it matter?

Food for thought.