High Win/Loss gives you a better feel?

A

ADX_trader

I saw a lot of systems that gave you win/loss ratio about 4:6. Although they were quite profitable, for a newbie, the psychological impact of watching so many losses was quite big. Is it better for a newbie to use a system with high win/loss ratio first?
 
In my first year I was stroking my ego with 65-70% winners. Problem was, I'd book a winner - ANY winner - even 5 bucks, just to keep the winning percentage high and book a "winning trade". For every 5.00 winner, though, I had 20.00 losers.

Screw the win:loss ratios; keep your gain:loss ratios in check and you'll suceed.
 
just had to chime in with some agreement, this is a big point for me in trading. Win/Loss is not why you are in this business.

When you tell your wife/girlfriend how well you have been trading, do you think it matters what your win/loss ratio is ? Hell no, what matters is how much cash you have settled in your account.

Are you in this for masturbation purposes or are you in this to make money ?

Trading is entertaining, it has a gambling thrill involved. Winning feels good and feeds the gamber instinct, which can then lead to a complete blowout. It has happened to me, though luckily I didn't have much money when it happened so it only cost me about 6 grand. Still to this day I wish I had that 6 grand in my checking account.
 
Quote from ADX_trader:

I saw a lot of systems that gave you win/loss ratio about 4:6. Although they were quite profitable, for a newbie, the psychological impact of watching so many losses was quite big. Is it better for a newbie to use a system with high win/loss ratio first?
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I have a method that gives me 85% winners and about 50K a year. I trade this along other style(s.) Outside of the money, the one thing that it resonates mostly with me is the theory that the markets are efficient is CRAP.

nitro
 
Quote from nitro:


I have a method that gives me 85% winners and about 50K a year. I trade this along other style(s.) Outside of the money, the one thing that it resonates mostly with me is the theory that the markets are efficient is CRAP.

nitro
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I agree with the sentiments of Brother Nitro...
 
I usually keep a record with all my trades and put them together based on performance and other factors.

My % profitable is 23.6% on bad days but my Risk/Reward is 9.7. I would take a scratch or 2-3 tick loss. Also, take the major part of the swing of the move. It works great because I'm a very good loser...

When I have major mojo I have a 100% profitable day with a 1000000000+:0 RRR...

But when I traded as system trader for a week. Total % profitability was 48% and RRR was 3.3.

I am a intraday trend-follower. No trend... no trade... That's why I have a high RRR. If you're a scalper like Nitro, it's a different story.

Honestly, it's a depends more on what kind of style you would like to trade under. More profit taking = More frequency and Profitability. If you have patience and discipline to follow (it's to follow... every trade needs discipline. If you scalp, you are tempted to keep a winning trader.) = Go for High RRR with reasonable % Profitability.
 
There's something to be said for a system that takes regular small losses. I find that if I've had a straight run of more than a handful of wins - I don't take the subsequent (inevitable) loss as quickly as I should. Sounds silly but I need to keep practicing taking small losses - otherwise I'll end up taking bigger ones.
 
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