What is your Risk Reward Ratio?

incometrade 

What is your Risk Reward Ratio?

Over a large sample of trades it is about 1 risk to 1.5 reward. However, you need to understand that when I actually place an order into the market, sometimes I am risking 1:1 or even worse. But to me, that is just initial risk, keep it at 2%. I very rarely take a full stop but sure it happens. So I think it's important to identify two things, initial risk and then what your 'real' results are from live executions, where you exited the trade.

Mike

1/1 . Initially I use an emergency stop because I need to see price close at the stop level then I take the stopout because I was proven wrong and I dont want a wick to take me out when I was right . I very rarely get ran over at the emergency stop and rarely get victimized by stop hunting . I take my profit at 1/1 because Ive found that the distance between the stop level and the entry is significant in that its range is usually equal to the next leg in the trends direction and trailing is rarely more profitable .