Penulis : Risk Reward Ratio Dan Harapan Profit
judul artikel : Risk Reward Ratio Dan Harapan Profit
Risk Reward Ratio Dan Harapan Profit
An assumption which is always repeated sooner or later will be accepted as a true statement there. In the world of forex trading is the assumption "if do not want to lose, then less likely to earn a profit (no pain no gain)." There is another assumption "You should determine the profit is greater than the risk of suicide in every trade you take you are doing". This can be expressed in different terms:
"Always specify the comparison between reward and risk is greater than 1"
"Trading is only a minimal risk reward ratio of 1: 1.5"
"If you set a target profit is greater than the risk, then your trading results will be positive"
"The determination of the risk reward ratio greater than 1: 1 means you will earn a profit greater than the risks"
These expressions can be concluded that the reward should always be greater than the risk, or the risk reward ratio must be greater than 1: 1, Can 1: 1.5 or 1: 2 and so on.
Many traders believe that the risk reward ratio is high (greater than 1: 1) to easily obtain a profit, even if the percentage of profit from tradingnya (win percentage) small. In fact, there are many profitable traders to always determine the risk is greater than the expected profit target. The key is the percentage of profit that is greater than the percentage loss in total tradingnya.
There is a measure of the probability of overall trading profit you, that profit expectations or expectancy. Profit expectations can be determined by four parameters as follows:
Percentages of total trading profit or winning trades are W%, and the percentage loss of the total trading or trades Losin is L%.
Average profit substantially in a winning trade (trade the profit) is Av W, and the average magnitude of loss in a Losin trade (trade the loss) is Av L.
4th parameter above is useful in determining whether or not good trading system that we have planned, and further decide whether the system will be applied to our live account.
Expectations of profit = (W% x Av W) - (L% x Av L)
Expectations of profit (in monetary unit) is mainly profit can we expect in the number of trades we have done. Some of the results robust, highly recommended to do a backtest trading system on account of our first demo, the fewest in 50 times the trade.
For example, after having been manually backtest for 6 months, trader A with 900 times the trade to obtain the following results:
W% = 70%, L% = 30%, Av W = $ 200, Av L = $ 420
A trader then profit expectations are: (0.7 x $ 200) - (0.3 x $ 420) = $ 140 - $ 126 = $ 14.
Based on this information, a trader will know that if they use the system tradingnya 100 times (100 trades) then the probability profitnya is $ 1,400. A trader know how? They know by calculating: W% = 70 and L = 30% (from 100 trade), then the expectation profit = (70 x $ 200) - (30 x $ 420) = $ 14,000 - $ 12.600 = $ 1,400.
This does not mean that a trader will certainly earned $ 1,400 profit, but it can realistically expect a profit of $ 1,400, having 100 times the trade. Of course it is possible that the results could tradingnya slightly worse or slightly better than expectations profitnya, but probabilitasnya approaching $ 1,400, after 100 times the trade.
Traders often focus on the risk reward ratio, and it appears the percentage of profit from the whole tradingnya (W%) is smaller than the percentage loss of his (L%), then the expectation can profitnya negative or even loss. If we only focus on the magnitude of the reward must be greater than the risk but ignores backtest trading systems, then we will not know how profitable our trading system.
It is ideally risk reward ratio greater than 1: 1 and W% greater than L%. But in reality, we can not bring reward (or target profit) should always be greater than the risks (or stop loss) if market conditions do not allow. It is worth noting that to achieve the maximum overall trading is knowing the percentage of profit and loss by doing backtest trading system, to available figures are unrealistic profit expectations
Demikianlah Artikel Risk Reward Ratio Dan Harapan Profit
the life of the muslim world Risk Reward Ratio Dan Harapan Profit, mudah-mudahan bisa memberi manfaat untuk anda semua. baiklah, sekian postingan the life of the muslim world kali ini.
0 Response to "Risk Reward Ratio Dan Harapan Profit"
Post a Comment