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Well as per my understanding, Risk/Reward Ratio is how much are you willing to lose in relation to how much you are looking to gain per trade, I've heard its good practice to have at least a 1:2 ratio, but I've mostly been setting the RRR according to whatever price action I see, but I still like to have a minimum of 1:1 ratio. If I see a long setup, I'll set the stop loss below any recent support and keep the target at the closest resistance (at least the first target is the closest resistance) and whatever RRR I get out of it, I take it (as long as it is more than 1:1)
It's how much you EXPECT to lose or win in a trade, not how willing, that would be Drawdown. Statistics on large data sets show that successful retail traders use 1:3 (and more). We'll talk about that later. Scalpers use inverted RRR, but that's another topic.
Second, out of the 3 is Trader's Edge. To simplify these are your setups to enter a trade. What is your current best setup? In other words if you enter 100 times using the setup, how many Winning, Losing and Scratch trades do you expect?
The third out of the 3 is Scrying (Black) Mirror. It is used to look/read a chart future, and confirm entries/targets among other useful things. Proficient in scrying see up-to 666 seconds of chart future.
Do you really think "Traders with 5-10 years of experience but still not profitable" wouldn't be aware of your first two out of three points for profitability within a month?:
1. They should be focusing on trades that have a decent reward to risk before they put the trade on when they consider what a reasonable profit target and practical stop distance might be?
(You say that statistics on large data sets show that successful retail traders use 1:3 and more. Do you have a link to that statistical anaylsis? Scalpers using inverted R/R, is kind of a myth isn't it. The only experience of scalpers I have is from courses by John Grady and Gray Norden, neither of whom advocate inverted R/R, they emphasise cutting trades quickly if not working and scratching where possible. HFT's too are obviously extreme scalpers and they are trying to profit or scratch, not taking comparitively large losses to their gains hoping that price will come back in to profit. That's what losing traders do whether they are trying to scalp or not).
2. They probably want to be having more winning trades than losing trades. Not absolutely necessary for making a profit in the long term, but certainly easier psychologically when placing trades so that trades aren't missed due to hesitation and generally better for anybody than having a low win rate.
That is basic trading 101 which can be read anywhere. But just knowing that doesn't mean somebody actually achieves those results long term or can turn profitable within a month by following them with three minutes a day of your guidance, or does it?
And your last point 3 quoted above, what does that even mean?
I googled "Scrying" and from Wikipedia:
"Scrying, also known by various names such as "seeing" or "peeping", is the practice of looking into a suitable medium in the hope of detecting significant messages or visions. The objective might be personal guidance, prophecy, revelation, or inspiration, but down the ages, scrying in various forms also has been a means of divination or fortune-telling.[1] It remains popular in occult circles, discussed in many media, both modern and centuries old." https://en.wikipedia.org/wiki/Scrying
So basically point 3 for profitability is to gaze in to a crystal ball and pretend you are in the occult while setting your chart to timeframes that traditionally reference the devil.
Presumably there is also a statistical analysis data set that shows that chart timeframes based on numbers from the underworld are more profitable than using timeframes based on Fib numbers or other types of 'special predictive magic numbers'?
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
The third point is so-called Psychology, however it is the intuition of experienced traders. We all use internal thought process and project future expectations. Intuition is best expressed or manifested on a Black Mirror.
It would be a good practice to request reference link for every claim on this forum. I can not share further details on my R/R claims it is proprietary data. Scalping is a skill with 90% or more win rate. Real scalping edge should be automated. Humans are not wired to withstand 90% accuracy long.
You are of course free to attempt any way to foretell the future in order to make money in the markets. If you believe you can employ literally magical means to do so by fortune-telling, that is up to you, and I wish you good luck with it.
But please confine your comments here and your advice to new traders to realistic, rational, fact-based strategies that work in the actual world of trading.
There probably are sites on the internet where a claim to be able to see "666 seconds" into the future by using a magic mirror are welcome and will be accepted as plausible, and will be appropriate to the site's purpose.
This is not one of them.
Thanks.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
Where have these statistics from large data sets been published, please?
I ask because all my own experiences over the decades I've been interested in trading, and interested in discussing techniques and methods with successful retail traders, have gradually but inexorably led me to exactly the opposite conclusion: that reward-to-risk ratios of 3.0 or more are very, very rarely viable or profitable for retail traders.