Leverage is totally irrelevant. Of course If I lose 10% of a 100 dollar account to make 90 dollars, i have to make 11.11111% on my 90 dollars to get back to 100 - a low risk to high reward approach will have no advantage whatsoever over a high risk ...

R:R Fallacy?

go on then give us the math/ reasoning

R:R Fallacy?

yep lol

Trader Dale - daily trading levels

Hi yes that is my conclusion and through exploring this it also brings along other conclusions like the importance of exit and the none importance of entry etc.

R:R Fallacy?

You are calculating whether the next bar will be an up bar or a down bar, based on the current bar. That isn't what I am asking and is looking too far ahead. Despite this, the test you did shows a slight edge in favour of what you thought I was ...

R:R Fallacy?

image

Price Price Baby

hey no i got this indi from somewhere else, not from the one you uploaded. It is drawing the profile exactly where i wanted it to draw i think.. image

Trader Dale - daily trading levels

Look at the candle below, price has moved down but is. now moving up to make this hammer type candle - which is most likely to happen next, price makes new high or price makes new low? image

R:R Fallacy?

lol you are free to post here TooSlow - I would like to hear your perspective

R:R Fallacy?

UJ shorts at 114.99 i reckon image

Trader Dale - daily trading levels

i got ozzy shorts at 7494 tomorrow from intraday image

Trader Dale - daily trading levels

Let's say that you have a trade signal to go long at where the price is now at the pullback, and the sl will go under the very low of that chart and your tp is the gap close giving roughly 1 risk to 2 reward. And you know that this setup is ...

R:R Fallacy?

When you take a trade that is closer to your tp and further from your stop loss, your probability of hitting tp is higher than a trade that is taken further from your tp and closer to the stop loss. Using a profitable strategy, when you take a later ...

R:R Fallacy?

Not sure what you mean here Simon..?

R:R Fallacy?

I am basically highlighting that your R:R is constantly changing throughout the lifecycle of a trade, whether you like it or not you are constantly risking more pips to gain less pips or less pips to gain more pips, depending on how the trade is ...

R:R Fallacy?

You are totally missing the point

R:R Fallacy?

Exactly.

R:R Fallacy?

Trade 1 you perhaps lost a couple times before you found a trde that climbed towards your target. You now have 30 pips unrealised profit and 10 pips stop meaning you are currently have 40 pips of equity at risk. Trade 2 you enter at the late stage ...

R:R Fallacy?

My point is that most people will not take a trade where their risk:reward is skewed i.e. risking 40,30 or even 20 pips as in the example you gave to make 10, yet when they enter a trade risking 10 pips to make 40 and the trade goes well and price ...

R:R Fallacy?

still, if you could move your stop loss and there was a higher low to hide your stop behind, you would move your stop to there? You would now be risking 20 pips to make 10

R:R Fallacy?