That's not really a negative R:R, but I know what you mean. If the win% is sufficiently high, then using a reward-to-risk less than 1 is okay. You're reducing the size of your wins in exchange for a higher win rate.

Negative risk reward ratios

Using a 1:10 reward-to-risk ratio is doable if your win rate is high enough. But if your TP is 10 pips, the spread will take a huge chunk out of your reward. i.e. a 2 pip spread will eat 20% of a 10 pip profit, leaving you with 8 pips. Thus, your ...

9-25% Monthly Enough?

Why are you so sad? Do you have a system?

Still losing

Oh how I wish I could have a profit factor of 2. I'm not sure how that guy can have a PF of 73.

What is Profit Factor calculation?

I've been with Pepperstone for 4 months now and haven't encountered any major problems. The only problem is the rejection of new orders in the first 10 minutes of a new trading day, but I think this is normal for most brokers? Their spreads are ...

Pepperstone Forex

I like to use some derivative of the ATR (average true range) indicator when determining my SL. ATR measures volatility and automaticaly adjusts my SL to account for that volatility. Using a hard rule like "5 pip" or "10 pip" stop loss is foolish ...

How can I be sure that my SL is in the right place?

If you're going to use fundamental analysis, a good question to ask yourself is where is your edge? The Big Money hire analysts who have spent their entire lives analysing a currency pair. And they're paid to analyse every single day with quality ...

How to learn fundamental analysis

Trading is about risk management. If you're not using a stop loss, you're not managing your downside risk (unless you believe in risking 100% equity). How many losers are you going to keep open until they turn profitable, if at all? Where is your ...

Real Fx traders do not use stoploss

I ran some more Monte Carlo simulations and concluded that 5% is excessive. In fact I will probably stick to 0.5% risk. I spent some time over the last few days reading Cashflow Quadrant (Rich Dad Poor Dad series). The key to wealth isn't so much in ...

5% risk per trade?

Hmmm, what do you mean by "high flyer"? The system is too good to be true? I've probably tested 50+ systems in the last year. Almost all fail or show negligible profit, but there were a few which produced profit factors in excess of 1.25 over 11 ...

5% risk per trade?

So there is no stop loss?

Never Lose in Forex - Guaranteed

Did The7 blow up his account?

The7 Trading System

hehehe

Never Lose in Forex - Guaranteed

Trading once a month is doable, but in my experience, you'll lose touch with the market and stop seeing yourself as a "trader" if you sit out for too long.

Compounding Trades: Trading only 12 times in 2013

Unless you have a very specific reason to withdraw any money, keep ALL your profits in your account and trade it. Delay "paying" yourself for as long as humanly possible. Let your money work for you. As your equity grows, increase your position ...

Withdraw or reinvest my capital?

I just finished watching the video. It seems to me that Paul Tudor Jones used a risk level of 5% back in those days? The video shows him going through a few trades. In the first trade, he goes long and loses 5-6% in a single trade.

Paul Tudor Jones- "Trader"

A profit factor of 1.25 isn't unusual for a mechanical system, at least in my experience. Also are you sure you're going broke after 100 trades? This is 5% risk of present equity, not 5% of starting equity.

5% risk per trade?

Very interesting and logical system, 60minuteman. I've been teaching myself price action but haven't paid much attention to engulfing bars, and your system seems very intuitive and clean. I'll backtest this but am very optimistic.

Buy sell line trading