Higher RR means lower probability. I prefer low RR with high probability. Losing a streak 7 trade in a row doesn't feel good at all, affect your trading pychology a lot.
@@PsychFXofficial For sure. I take trade with R/R=2/1. If I toss a coin I have 67% of the time winning the trade. So I just need a little bit of an edge in trading to be profitable. I dont have to face a big drawdown period. Even I move slowly in making profit. But It's stable and safe, end of the day or week or month with profit.
Once I accepted that every trade outcome is random (thank you Mark Douglas), THIS has been my biggest emotional struggle. What RR to go for. I started learning SMC because of the sexy RR potential but rarely hit the big moves, and if I look back at it.. I have consistently hit 1:2 and 1:3 trades but was a "snob" and thought that wasn't good enough. For my mental health lol, I think I have figured out that 1:2 or so is where I am happiest even if I can't pass FTMO in one trade. Great video.
Same here. When i was smc trader i catched 1:15 1:20 trades and more but only after 7 to 10 consecutive losses. It was killing me from the inside man but with the 1:1 it’s all good all the meta5 became blue 😂
Yeah I was also backtesting 1 to 20 or even 1 to 40 trades but is draining seeing apart from masive losing steaks seeing trades at 1 to 5 or 1 to 10 reversing and becoming a loss apart that is soo infrecuent catching the best moment for such RR trades I go with my special trailing stop loss after It hits 1 to 1 move stop to break even and trail it untill It geta hit
What really helps me with higher rr is having 3 take profits based on liquidity, and price action, and having the first tp also move stoploss to breakeven
I use al ways the same strategy and riks the same %, but I chose r.r. based on price action, most the times is 1 to 1.25/ 1 to 1.5 sometimes 1 to 2 and 1 to 3, that gives me approx 15% return a year per 1% risk. And about 55 to 60% win rate.
Hi Sam I trade a 25% win rate with a 10:1 R:R...Because I make 10 trades per day most days i always make at least 1 successful trade which gets me to break even and most days its 2-4 winners...Getting 0-10 for the day occurs less frequently than getting 5-6 winners in a day so if you do the math you can clearly see how powerful it is....I trade 0.80% of my account size per trade so that makes it very easy to digest long losing streaks. The issue is when you are trading low win rate strategies and trading like 1.5-3% of account size which then makes the drawdown potential significantly increase.
For psychology for psychology aspects a 50%+ winrate is definitely good, and atleast a 1:2 RR... anything less than that your psychology aspect when trading will be hard
I do 1 to 3 but once price closing in profit one candle I enter another position. Put the first one to break even and aim for the same target on my second position. I have a 42% win rate but my rr is above 3 r most of the time. I get 5.2 rr on those added positions. I can lose 14 in a row and win 2 and half trades to make up for my loss.
There is no such thing as a “best ratio” there are so many other variables that make it change. Two of plans could have two opposite approaches and both be profitable. The search for what’s the “best” method in ANY sense with technical analysis is an endless one and one that doesn’t get people anywhere. It’s about picking something, backtesting it properly and reviewing those results, making any tweaks necessary and testing again. Thousands of working strategies and methods, the real holy grail is mastering the psychology ! 🙏🏼
Very interesting video, thanks. Maybe a good option is to use 1:1 RR and, instead of using "take profit", use trailing stop loss, that way one maybe is able to make more than 1 R. Subscribed!
Thanks 👍 Yes, another TH-cam guy put one hundred trades at 1: 1, and assuming a 50/50 outcome, into an algo backtester -- and of his 50 losers he had 7 or 8 losses in a row.
99% of things can work. Risk reward is nothing more than a choice of risk profile, that’s it. I’ve seen people and used risk rewards far “worse” than that and it’s fine if used correctly.
Winning rate includes breakeven ? Suppose i trade with 1:6 and my winning rate is 35% . What's position size would be best for me ? 0.5 or 1% of account? Please reply to my questions
My positive size is determined by a multiple of my biggest losing streak which is indirectly related to the win rate. I normally have a 1.5-2X multiplier. So if my biggest losing streak when testing was 6 then I’ll have my risk management account for 9-12 losses in a row.
Higher RR means lower probability. I prefer low RR with high probability. Losing a streak 7 trade in a row doesn't feel good at all, affect your trading pychology a lot.
Most are the same as you, at least it’s a good place for most to start - much less stress
@@PsychFXofficial For sure. I take trade with R/R=2/1. If I toss a coin I have 67% of the time winning the trade. So I just need a little bit of an edge in trading to be profitable. I dont have to face a big drawdown period. Even I move slowly in making profit. But It's stable and safe, end of the day or week or month with profit.
Right, Thank you
Once I accepted that every trade outcome is random (thank you Mark Douglas), THIS has been my biggest emotional struggle. What RR to go for. I started learning SMC because of the sexy RR potential but rarely hit the big moves, and if I look back at it.. I have consistently hit 1:2 and 1:3 trades but was a "snob" and thought that wasn't good enough. For my mental health lol, I think I have figured out that 1:2 or so is where I am happiest even if I can't pass FTMO in one trade. Great video.
Same here. When i was smc trader i catched 1:15 1:20 trades and more but only after 7 to 10 consecutive losses. It was killing me from the inside man but with the 1:1 it’s all good all the meta5 became blue 😂
Yeah I was also backtesting 1 to 20 or even 1 to 40 trades but is draining seeing apart from masive losing steaks seeing trades at 1 to 5 or 1 to 10 reversing and becoming a loss apart that is soo infrecuent catching the best moment for such RR trades I go with my special trailing stop loss after It hits 1 to 1 move stop to break even and trail it untill It geta hit
What really helps me with higher rr is having 3 take profits based on liquidity, and price action, and having the first tp also move stoploss to breakeven
I use al ways the same strategy and riks the same %, but I chose r.r. based on price action, most the times is 1 to 1.25/ 1 to 1.5 sometimes 1 to 2 and 1 to 3, that gives me approx 15% return a year per 1% risk. And about 55 to 60% win rate.
Hi Sam I trade a 25% win rate with a 10:1 R:R...Because I make 10 trades per day most days i always make at least 1 successful trade which gets me to break even and most days its 2-4 winners...Getting 0-10 for the day occurs less frequently than getting 5-6 winners in a day so if you do the math you can clearly see how powerful it is....I trade 0.80% of my account size per trade so that makes it very easy to digest long losing streaks. The issue is when you are trading low win rate strategies and trading like 1.5-3% of account size which then makes the drawdown potential significantly increase.
Absolutely agreed, there are infinite variations all with their pros and cons and this would be a classic example of that. Thanks for sharing :)
You won't always get a win every ten trades with a 25% WR there's a chance you could even lose 20 in a row
@@lylel3471 if you lose 20 in a row you better improve your entry methods
For psychology for psychology aspects a 50%+ winrate is definitely good, and atleast a 1:2 RR... anything less than that your psychology aspect when trading will be hard
You killing it! Thanks for the sauce! 🔥👊🏾
Thanks bro! My pleasure how’s trading been going? 🙏🏼🚀
@@PsychFXofficial on/off still learning how to trade short timeframe .. Don't have patience for htf 🤣
Great playlist. Adrenaline rush))
Hopefully I can now put my strategy together!)
Thanks for your videos!
❤️❤️
My challenge accounts usually have high win rates of 90% - 97%. Matter of fact I passed the phase 2 verification with 97% last week.
probs negative rr right
Amazing
I do 1 to 3 but once price closing in profit one candle I enter another position. Put the first one to break even and aim for the same target on my second position. I have a 42% win rate but my rr is above 3 r most of the time. I get 5.2 rr on those added positions. I can lose 14 in a row and win 2 and half trades to make up for my loss.
Thank you so much sir for your sharing this
No problem, glad you enjoyed ! :)
Have you figured out the ratio for the best reterns?
There is no such thing as a “best ratio” there are so many other variables that make it change. Two of plans could have two opposite approaches and both be profitable. The search for what’s the “best” method in ANY sense with technical analysis is an endless one and one that doesn’t get people anywhere. It’s about picking something, backtesting it properly and reviewing those results, making any tweaks necessary and testing again. Thousands of working strategies and methods, the real holy grail is mastering the psychology ! 🙏🏼
Hello, do you still do the free 1-1s I applied but I’m not sure if you still do them
I don’t anymore unfortunately, however the academy does come with a complimentary 1:1
For 1:1 how much do u risk per trade ?
Very interesting video, thanks.
Maybe a good option is to use 1:1 RR and, instead of using "take profit", use trailing stop loss, that way one maybe is able to make more than 1 R.
Subscribed!
Thanks ! :)
Thanks 👍 Yes, another TH-cam guy put one hundred trades at 1: 1, and assuming a 50/50 outcome, into an algo backtester -- and of his 50 losers he had 7 or 8 losses in a row.
Wonderfull explanatiın again.
Again, another Gold Medal 🥇 😍
(1/7 was really crazy attemp for me 😩😣😱 )
I would like training in return for some testimony’s 😀
Hi Ryan, this offer is now closed unfortunately 🙏🏼
what do you thin about something like risk 4 reward 1?
99% of things can work. Risk reward is nothing more than a choice of risk profile, that’s it. I’ve seen people and used risk rewards far “worse” than that and it’s fine if used correctly.
@@PsychFXofficialThank you
Winning rate includes breakeven ?
Suppose i trade with 1:6 and my winning rate is 35% .
What's position size would be best for me ? 0.5 or 1% of account?
Please reply to my questions
My positive size is determined by a multiple of my biggest losing streak which is indirectly related to the win rate. I normally have a 1.5-2X multiplier. So if my biggest losing streak when testing was 6 then I’ll have my risk management account for 9-12 losses in a row.