Quote from: Jhonyguy on January 20, 2019, 07:38:04 PM

there are many traders who dont care about risk reward trust me this is what necessary to survive in trading

so how to do it

case 1= 80% accuracy 8/10 trades are profitable RR IS 1:1 (2$ SL AND 2$ TP ) good trader accuracy
16$profit / 4$ loss = 12$ profit
case 2=50% accuracy 5/10 trades are profitable RR is 1:1 average trader accuracy
10$profit /10$ loss=0$ profit
case 3 =30% accuracy 3/10 trades are profitable RR is 1:1 bad trader accuracy
6$profit/14$ loss=14$ loss

now accuracy is same but lets increase RR ratio 1:2 (2$ SL AND 4$ TP)
case 1= 80% accuracy 8/10 trades are profitable RR IS 1:2
32$profit / 4$ loss = 28$ profit
case 2=50% accuracy 5/10 trades are profitable RR is 1:2
20$profit /10$ loss=10$ profit
case 3 =30% accuracy 3/10 trades are profitable RR is 1:2
12$profit/14$ loss=2$ loss

compare RR 1:2 and 1:4 see how profit increase and loss decrease doing like this will give you confidence because you know the risk

Now lets learn something about position sizing

here comes question whether to buy same quantity for all Risk reward trades
no

good RR trade 10coins lets assume ( 1$ is SL and 4$ is take profit )
10 coins 40$ profit /10 $ loss
suppose you want to increase risk you have to manage with quantity size so that it will match your RR ( 2$ is SL and 4$ is take profit)
5 coins 20$ profit/10$ loss
see risk is same this is how you trade more risk trades

1) what to do is you dont get good RISK REWARD TRADE
simple dont trade that day protect your capital and search for trades next day

2) how to increase accuracy Grin

you have to do that by learning and developing new strategy and system

3)dont take trade which is less then 1:1 RISK REWARD

4)do this if you are making loss

5) good trading is all about managing risk because thats is what you can control you dont know how much reward you will get you cant control it

I see your risk management is like gambling because 1:1 is not healthy for me but 1:2 is the right one. Higher profit using low asset is the key but disciplines with our rules is necessary. Every calculation depend how much we have and how realistic the target. Think twice because market is in red zone right now.