Jump to content

Risk/Reward link with Win rate


Recommended Posts

Hi all,

I read this article about how risk/reward and win rate and linked.  The thing is though in order to use the cheat sheet for risk/reward and win rate, you need to know what your win rate is first based on historical trades?  But to do that you had to have decided on a risk/reward ratio already when setting limits/stops?  I feel like this is a chicken and egg situation.

https://www.tradeciety.com/how-to-use-reward-risk-ratio-guide/

What this is suggesting is that if your win rate is higher you can have more risk and less reward e.g the last row in the table is 75% win rate gives 0.3:1 reward to risk.  But if you look at it a different way is it not like saying take more risk and you will win more?

 

Link to comment
36 minutes ago, u0362565 said:

Hi all,

I read this article about how risk/reward and win rate and linked.  The thing is though in order to use the cheat sheet for risk/reward and win rate, you need to know what your win rate is first based on historical trades?  But to do that you had to have decided on a risk/reward ratio already when setting limits/stops?  I feel like this is a chicken and egg situation.

https://www.tradeciety.com/how-to-use-reward-risk-ratio-guide/

What this is suggesting is that if your win rate is higher you can have more risk and less reward e.g the last row in the table is 75% win rate gives 0.3:1 reward to risk.  But if you look at it a different way is it not like saying take more risk and you will win more?

 

Hi, yes I cover this quite extensively in the 'Trade Planning and Testing' thread where there is also a link to download a basic free spreadsheet that will auto calc cumulative win rate and cumulative risk reward that you can plot onto the profitability graph chart.

  • Great! 1
Link to comment
4 minutes ago, Caseynotes said:

Hi, yes I cover this quite extensively in the 'Trade Planning and Testing' thread where there is also a link to download a basic free spreadsheet that will auto calc cumulative win rate and cumulative risk reward that you can plot onto the profitability graph chart.

Aww you're a good chap Tom Bombadil 🤓🐮😻

Link to comment
3 hours ago, Caseynotes said:

Hi, yes I cover this quite extensively in the 'Trade Planning and Testing' thread where there is also a link to download a basic free spreadsheet that will auto calc cumulative win rate and cumulative risk reward that you can plot onto the profitability graph chart.

Great thanks for taking the time to do that,I'll check it out!

Link to comment
  • 2 years later...
On 05/06/2020 at 16:36, Caseynotes said:

Hi, yes I cover this quite extensively in the 'Trade Planning and Testing' thread where there is also a link to download a basic free spreadsheet that will auto calc cumulative win rate and cumulative risk reward that you can plot onto the profitability graph chart.

Hi

I put Trade Planning and Testing in the search but it didn't return anything with that title. Do you have a direct link?

 

Thanks

Elly

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Massive support for Peanut as the meme finally breaks $1 and approaching $2. Trump is finally the highest holder of this meme which was listed at 0.12 on Bitget just last week. I posted about the token and made few analysis of this  current trend . Even when the current resistance at $1.8 looks very strong since it got reject twice now but if it finally breaks it then $2 could be on the card guys   
    • The cryptocurrency world is no stranger to innovation, and Fartcoin is the latest example. Built on the Solana blockchain, Fartcoin is part of the Terminal of Truth project, which allows users to observe AI conversations without constraints. This project aims to explore the boundaries of AI and see if it can achieve surprising performance.   While some may see it as a novelty, others believe it could provide valuable insights into AI's capabilities. It's a unique approach that combines the worlds of cryptocurrency and artificial intelligence, and it will be interesting to see how it develops after its debut listing on tier 1 CEXs like Bitget. What are your thoughts on the intersection of AI and cryptocurrency?
    • hey everyone! The trading volume of Department Of Government Efficiency (DOGE) is $24,855,197 in the last 24 hours, representing a 240.10% increase from one day ago and signalling a recent rise in market activity. DOGEGOV can be traded on decentralized exchanges and centralized crypto exchanges. The most popular exchange to buy and trade Department Of Government Efficiency is Raydium (CLMM), where the most active trading pair DOGE/SOL has a trading volume of $1,361,819 in the last 24 hours. Other popular options include Bingx and other exchanges token prices increased by 75% in just 24 hours, reaching $0.163. This surge contributes to an impressive weekly gain of 291%, outpacing the performance of its namesake inspiration, Dogecoin. the token just recorded The trading volume spiked 220% to over $17 billion in the last 24 hours, making it the fourth-most traded cryptocurrency in the said period. what do you have to say about this?  let have more insight
×
×
  • Create New...
us