Help with Risk Reward

[jennywestwong]

For higher rewards, you may need to increase the time frequency of your chart.

I have stumbled across quite a few people mentioning higher timeframe would yield better R:R, do you mind explaining to me why this is the case? My novice ignorance can only see the same type of candlesticks across all timeframes. Where exactly is the difference between higher TF vs lower TF?

 

[jennywestwong]

1. Longer timeframes.
2. Scale into winners.
3. Set targets.
4. Have reasonable stops. (be willing to lose a bit)

I have stumbled across quite a few people mentioning higher timeframe would yield better R:R, do you mind explaining to me why this is the case? My novice ignorance can only see the same type of candlesticks across all timeframes. Where exactly is the difference between higher TF vs lower TF?

 

[Tradex]

I have stumbled across quite a few people mentioning higher timeframe would yield better R:R,

The idea that we can somehow make more money on the higher time frames (daily, weekly, monthly) is just a freaking myth, I can assure you.

 

[ph1l]

I have stumbled across quite a few people mentioning higher timeframe would yield better R:R, do you mind explaining to me why this is the case? My novice ignorance can only see the same type of candlesticks across all timeframes. Where exactly is the difference between higher TF vs lower TF?

Transaction costs (e.g., commissions, slippage, bid-ask spread) are higher as a proportion of profit for shorter-term trades.

 

[Dustin]

Your trading style does matter. I'm always looking to build positions that can move on the multi-day timeframe (using options) because that is where the massive moves can happen. This is especially true since last year.

 

[SimpleMeLike]

The idea that we can somehow make more money on the higher time frames (daily, weekly, monthly) is just a freaking myth, I can assure you.

Tradex,

You are 1000% right. I ONLY look for trading strategies on smaller time frame chart.

 

[Ninja Mobile Trader VPS]

I have stumbled across quite a few people mentioning higher timeframe would yield better R:R, do you mind explaining to me why this is the case? My novice ignorance can only see the same type of candlesticks across all timeframes. Where exactly is the difference between higher TF vs lower TF?

By higher timeframe I mean longer holding period.

 

[murray t turtle]

By higher timeframe I mean longer holding period.

%%
JWW is right about same kinds of candlesticks on 15 minute charts as say/ monthly candlecharts.
BUT its easy to figure out why most of the money is made on longer time frames.
Including but not limited to;
longer time frames pay dividends,
longer time frames= less slippage/ less comissions, [edit= less bid ask spread]
not much liquidity @ turning points/15 minute charts turn much more than monthly charts.......
Contrast public money made in shorter time frames ,is much less than longer time frames;
+ all the money lost in frequent trade hedge funds.......
Some hedge funds + market makers do very well/ so anything is possible.

 

[oraclewizard77]

This trade was based on Fed meeting producing possible negative thoughts about interest rates to achieve a possible waterfall. Software I use is Ninja Trader 7, please keep it running.

 

[Katyannaria]

so that you have a more accurate understanding of what you are doing and with what risk - you need to try it, otherwise you will just sit and guess