Help with Risk Reward

Tradex said:
Higher time frames are more profitable ?!?
Who told you that?



Yes.



Yes and no.

If you are trend-following, setting an artificial target will severely limit your profits in the long run.



There is no such thing as a "reasonable" stop. Your optimal stop must be dictated by your backtest, period.
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I see your points;
+ there is more than one right answer for some things/trend follow + hit profit targets.................................................................................
Back to my higher time frames:caution::caution:
 
jennywestwong said:
Hi fellow traders, I have improved from a risk:reward of 10:1 with indicators to 3:1 with supply & demand price action over the past year. The thing is, when I even try to do 1:1, let alone higher reward than risk, the price movement easily touches my stoploss. I understand that higher reward:risk equals lower probability of winning, but I have done many hours of backtest and getting a positive expectancy seems very difficult unless the majority of trades have a perfect entry close to the reversal points. But in reality, with confirmation (candlestick/psychological) and slippage, you're often already a few pips away from the perfect entry point by the time the trade is executed. Whereas with limit order presets, it is not guaranteed for a fill (happens to me almost daily).

I know that the majority of teaching materials/youtube tutorials cherry pick charts that can show a risk:reward of 1:5 or more to impress beginners so that they can upsell more courses/books. So I am curious to know if you personally can get a higher reward to risk on a consistent basis and if you can share some pointers on your setup such as timeframes, trades per day, order type, and how you are able to achieve that higher reward to risk.
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i have personally been trading supply demand with SMC concept for a year and big RR is nothing but an upsell for their course its hardly 1% or 2% in gain
you look at your account with % gain
most of the traders who look at RR gains risk way less than 1% and that was hitting 100RR with partials taken off and risking 0.25% will not be even 5% of the capital its just misleading and a way to sell their course and mentor ship to the beginner.
just my experience in this 1 year of SMC
 
Dustin said:
I haven't had a losing year in 23 years of full time trading. You can have your opinions, I'll keep mine.
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Congrats on well timed entry/gain GME $6 area;
even though it was a put\ i see on second glance/LOL
Good thing about about trading/investing-- there are many ways to make a profit........................................................................................................
 
A great way to lose money would be chasing r:r. This leads to efforts to reduce risk by using tight stop-losses and to increase reward by setting TP's further and further away.

There is another way of looking at trading which should avoid this trap - look on trading as a means to increase your salary, not a means to make a big pile of money.

We've all had a salary. You're damn lucky if your salary rose by 5% a year. Trading can better this - suppose you have only a 50% win rate, a risk of only 1% per trade, you only make 20 trades a month, and your strategy has a r:r of only 1.0:1.5. You will double your salary faster than your wage-earning friends.
 
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