Risk/Reward Ratio

[SunTrader]

Fuzzy math ??

Any relation to fuzzy logic??

Yikes!!!!

Sorta fuzzy posting like









this.

 

[Sprout]

Risk to Reward

One of those bullshit terms the industry made up and uses


Reward - does anybody (other than the invisible ones) - really ever know how far price will move in their favor - no

And if you think otherwise - then you're essentially saying you can accurately predict price movement



Risk - this the only one of the two that can (and must) be defined (and obviously adhered to)


Stop needs to be place where the position has broken down and no longer valid (behind a "defended" level or similar for example)

Then..., position size needs to be such that it within one's risk tolerance


ATR can help with above - just be aware volatility changes / evolves throughout each session

RN

While your opinion is valid based in your experience, you would be mistaken in regards to the metric of R:R and it's usefulness in quantifying intraday price movements.

 

[Redneck]

Y'all crack me the hell up - carry on

RN

 

[Laissez Faire]

Y'all crack me the hell up - carry on

RN

You elicit quite a few good laughs yourself.

 

[Redneck]

Y'all get butt hurt over my stance

Not my problem

ETA - when one can't attack the subject - attack the messenger

Typical shill responses


RN

 

[taowave]

Attacking the messenger??

You shared your opinion,and presented ZERO to substantiate your opinion...

Stops are good,profit targets are worthless... Great news,now spend 5 minutes and read an intro book on Probability and statistics

Y'all get butt hurt over my stance

Not my problem

ETA - when one can't attack the subject - attack the messenger

Typical shill responses


RN

 

[newwurldmn]

Risk to Reward

One of those bullshit terms the industry made up and uses


Reward - does anybody (other than the invisible ones) - really ever know how far price will move in their favor - no

And if you think otherwise - then you're essentially saying you can accurately predict price movement



Risk - this the only one of the two that can (and must) be defined (and obviously adhered to)


Stop needs to be place where the position has broken down and no longer valid (behind a "defended" level or similar for example)

Then..., position size needs to be such that it within one's risk tolerance


ATR can help with above - just be aware volatility changes / evolves throughout each session

RN

This is not true.

In the vol space, one can predict where an option will trade conditioned on a specific event. So you can determine your risk reward extremely quantitatively. Where the art is is determining the probability off the specific event.

This is true of most arb-y style trades.

 

[Laissez Faire]

Y'all get butt hurt over my stance

Not my problem

ETA - when one can't attack the subject - attack the messenger

Typical shill responses


RN

Take a look in the mirror first, buddy…

You’re the one acting hurt and throwing a tantrum just because your claims are not met with uncritical praise.

 

[SunTrader]

Risk IS the probability of event happening or not, not how much $ one can possibly lose.

 

[ironchef]

Attacking the messenger??

You shared your opinion,and presented ZERO to substantiate your opinion...

Stops are good,profit targets are worthless... Great news,now spend 5 minutes and read an intro book on Probability and statistics

Sir, you should stop here:

Let me quess,you are a trend follower...