Don't just blindly use a 2:1 or 3:1 reward to risk ratio guys. All strategies work differently and respond to different reward to risk ratios. If you can, always test them out.
Through experience, using the average true range (ATR) for profit targets makes more sense. If the ATR for a market is 6 (as an example), then 10 (ATR x 1.7) is somewhat reliable.
You could try splitting the position in half at 1:1 or better and still use the timed exit for the remaining half of the position, or use 2 positions instead of splitting if that's easier. Say 2x half lots. This generally has the effect of smoothing the equity curve, catching more profit on trades that pulled back to less than the 1:1 split. Thanks Jarrod.
Hey I’ve watched your video and I think the information is quite useful. just curious... do you have an automated system that applies all the strategies known to you? How many strategies would you use for a particular trade?
Hey Jarrod....do you ever split your trades into seperate contract sizes to optimise returns .....so always put a simple 1:1 trade in to secure BE then add some additional contracts to secure maybe some additional income.....personably Im not a fan of targets at all aside from hitting a be level as already mentioned....therez plenty of decent exit strategies that can be very powerful in forex ....N
I've found by splitting the trades up does tend to decrease overall profit when using algorithmic strategies. I will sometimes use it if I want to increase winning percentage of a strategy but generally I don't.
Don't just blindly use a 2:1 or 3:1 reward to risk ratio guys. All strategies work differently and respond to different reward to risk ratios. If you can, always test them out.
Great video, thank you!
Excellent analysis and "we should backtest everything" reminder. Most informative and helpful...
Through experience, using the average true range (ATR) for profit targets makes more sense. If the ATR for a market is 6 (as an example), then 10 (ATR x 1.7) is somewhat reliable.
You could try splitting the position in half at 1:1 or better and still use the timed exit for the remaining half of the position, or use 2 positions instead of splitting if that's easier. Say 2x half lots. This generally has the effect of smoothing the equity curve, catching more profit on trades that pulled back to less than the 1:1 split. Thanks Jarrod.
Hey I’ve watched your video and I think the information is quite useful. just curious... do you have an automated system that applies all the strategies known to you? How many strategies would you use for a particular trade?
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Reach out for guidance on whtsap
Hey Jarrod....do you ever split your trades into seperate contract sizes to optimise returns .....so always put a simple 1:1 trade in to secure BE then add some additional contracts to secure maybe some additional income.....personably Im not a fan of targets at all aside from hitting a be level as already mentioned....therez plenty of decent exit strategies that can be very powerful in forex ....N
I've found by splitting the trades up does tend to decrease overall profit when using algorithmic strategies. I will sometimes use it if I want to increase winning percentage of a strategy but generally I don't.