How to Find Risk Reward Ratio for any Trade?
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- เผยแพร่เมื่อ 13 ต.ค. 2024
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Risk-reawrd ratio is the holy grail in trading. I feel like risk is the only thing under our control in the market so managing it is our only duty.
My first comment in TH-cam though I am using it since many years. I take this effort to give feedback because from your videos I am not only exploring more on share market but also learning few key aspects as below...
* Presentation skills
* How to communicate effectively
* Thought process
* * Generosity in giving back to the community.
Please keep it going.
This is the best explanation I found on the topic on entire TH-cam
The best explanation of Risk/Reward using Trading View ever. Thank you very much.
Sir, can you make a video on trend line and chart pattern
Knowledgeable risk always provides better reward than uncalculated risk if you make loss sometimes. Super simplified sir👍
Very well explained. Can we execute a trade from this tool itself, or do we need to navigate to another screen to enter the trade? This is after we have adjusted the boxes to show the risk vs reward.
Risk management is always comes at top to trade like a pro....
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Nice one... Well about question.. Even 1:1 RR also be fine because making 1:2 or 1:3 chances are very high to loose what you have.
As u already told in one of your expiry special video that sometimes option sellers plays for probability rather than RRR..... RRR is not good but hit rate is high
i have seen lot video regarding to market but your clear explanation is really awesome keep it up,
Great option and Thanks for helping us understand sir. Coming to your question, Always risk should be defined and unfavorable risk reward is not accepted. I will not take trade in such cases.
risk and reward ratio very simply explained simple way, you are a great coach sir, thanks , sanjiv deshle
Good video. Is it possible to convert the tool data to an order in zerodha or tradingview OR is it possible to write a script totrigger order based on this.?. Thanks.
Thank you for not wasting my time. I don't know what's wrong with almost all the videos on TH-cam because they're not explaining shit. They only teach you like you already know it.
Well explained. I am new to stock trading. I was not aware of this tool . Exiting to learn new things .. thanks yo your excellent videos explained in such simple words.
Thank you so much Sir now I can Understand the concept of Risk- Reward Ratio more clearly.
how to use this tool for position sizing in case of Nifty option buying can this tool tell the number of lots to be traded as per capital used for trade?thank you for nice video
Clean crystal knowledge 👌
My opinions is risk reward is more imp than winning ratio so we should take only high rr ratio trades hope this is the answer
Thank you. From US. Just started use Trading view. Very helpful video. Keep good work.
extremely simplified narration, thanks lot.
Excellent way of teaching.
Position sizing
Risk management is the key for trading.
Jesse Livermore once said
Trader is a one who makes money while having only 20% accuracy.
Some people claim themselves 90% accuracy these are bullshit. They win 9/10 trades
They make profit of 10k while winning.
But they loose 1lk in single trade .
Even 90% accuracy so many people loose money.
If you are accuracy is just50%. If you are master in position sizing and risk management you will made tremendous amount of money.
Dear Sir, I suppose you can directly right click that Long Or Short position tool in TradingView and place order while you can’t do so in Zerodha ; right ?
Considering my capital.. i had to be option buyer and im struggling with risk reward ,especially wensday and thursday.. can i suggest me how to overcome
Best Explanation so Far
Sir , please make a video , to how to identify range bound markets and trending markets
If we are sure , then we may not thing about favorable risk reward ratio. Very nice content and hope to see you lot more videos on option trading for beginners. Thanks a lot once again
Yes sir. Your risk is less .. The probability of hitting stop loss is more ..But when you are not confident about your view on market better to maintain low risk.i mean less stop loss.
Thank you very much sir for sharing this video. It cleared my doubt.
Along With RR we also have to look for Probability of that trade..So every time We cannot judge the trade based only by RR ratio. For ex Option Sellers
Is this available in Zerodha - Chart IQ on Kite ??
when you are in a trade with high probability of success , where reward may be lower than the risk , but its worth to take . if i'm wrong please correct me
Thanks - the risk/reward was perfect for what I was looking for!
Sir beech ka nahi samjah jaha 7.44 likha tha woh part bus or others numbers was written ?
Good info. But I don't see the risk reward drawing tool in Zerodha. Can somebody clarify?
Much awaited video..excited💪
Risk reward ratio below 1 basically demands u to be have great accuracy. I don't see any other situations where one should take these type of trades
sir....you are a god gifted for us ....can you plz share how do you are doing this wonderful editing?
The whole video was helpful
is it possible to convert the risk reward position tool to an order in zerodha.
Sir,
Alerts making in Trading view platform so simple and ur presentation is super
but Strategy Alert making I think incomplete, what is to be filled in massage box and strategy name portion not explained . Iam waiting ur valuable reply.
SIr Can u make auto trading i.e BUY and SELL) Video
Many a time R:R may not be relevant as it seems in theory. There are other parameters which govern the movement wherein the probability of rewards is much higher though small if considered wrt RR.
From my experience what I've seen is risk reward ratio can be misleading..
Eg., Nifty is at 10K, my Stop loss is 9k and Limit set is 12K. Risk reward ratio is 2 which looks fantastic.. But unless I have a strong conviction, this approach will lead to issues because there is higher probability of stop loss getting hit..
What do you think @vrdnation?
Btw another brilliant video. Sir please continue making such videos.. We all are learning a lot from these
Higher probability of stop loss getting hit then buy at stop loss price.
you could probably use a mental stop loss and use it based on the prevailing market conditions , however entering a trade without a R/R migh turn out to be painfull
One will take a long or short position based on his/her conviction on probable Support & Resistance. RR would go unfavorable when S&R deviates from expected values which can happen due to unforeseen sudden events(positive/negative) in the market which could break S/R making trade go favorable or unfavorable but not with expected RR ratio.
Can you please make video on option pricing calculation, How banknifty option price calculated per strike price??
Very good information lots of trader don't know about this tool l also did not know. 🙏🙏🙏🙏
Today I watched 5 video and more new feature of trading view.
Thanks a lot 🙏
Yes sometimes R-R is not favorable but still I take to sell OTM option on index
Thank you bro-Prithivi.
Outstanding explanation
`Very nice and easy tool... Thanks
Yeah,in option selling,risk- reward may not be favourable. However if done properly it is rewarding.
For option writers, the risk reward can be set to 1:1. For e.g. max profit of say 10k and you plan to get out of the trade with 50% of the max profit of 5k then risk could be defined as 5k. Does this make sense? Let me know if anyone having a different look.
In the long run you will be at loss sir. In the trending market you can increase your reward than your risk.
Hi, is there a change in how we can use this RR ratio tool in Zerodha? In the currency futures I am not able to give the number of ticks, it is considering 0.0001 as tick size instead of 0.0025 in USD/INR futures... any idea why this is happening?
Thank you sir for making videos everyday for us please if possible make a video on supply and demand zone and option chain analysis
Thank you
Brilliantly explained..
Hello,
I entered 1000 USDT in a Crypto pair trade position by a Risk-to-Reward of 2 ;
If it reaches to my take profit/TP, then I will
have 2000 USDT ?
Thanks,
Trading is all about probabilities and the best we can do as trader is increase our odds/chances of winning so a favorable risk reward ratio helps increase our chances esp for retail traders.
Exactly what I was looking for
Thank you ☺️
Awesome Video. Thank you!
Obviously its not advisable if the risk-reward ratio is not favorable.. btw, drawing a trendline is mandatory to draw risk-reward on the chart?.
If r/r is not in favour also, you can enter trade where probability of winning is high, like in options selling
Yes if there is probability of winning then it's ok to take risk more than reward
bro , what about the brokerage we have to include the brokerage in RRR otherwise complete calculation will go wrong
What is "Ticks"? How those values are calculated. Also how the quantity being calculated?
Sir, risk is fix but reward is probability
I think let's fix risk as per best point on chart or indicators and wait for reward.
If SL hit take as investment loss.
If reward then be Happy.
Is this tool available in zerodha???
sir....if I have enough money then i will not bother Risk reward ratio....
As usual great content..
any one know after you place a trade on TRADING View why you cant see stop loss line
I just want to learn about position sizing... If possible please make a video about it sir.
Thanks in advance 🙏🏼
As you already discussed, risk reward is undefined in options selling. Still we do it as the probability of reward is more than risk. But VIX plays a major role in options pricing. Options prices rise when VIX rises and vice versa.
If my RR ratio is let's say 1 but the probability of getting the plan worked out is 80% then it's still a good trade.. similarly if the RR ratio is 2.5-3 but the probability of getting the plan worked out is 40% then it's a bad trade
If the probability of trade is high in winning (say like above 90%), we can risk more
Good explanation brother 👏
When Probability of such trade is more, than in that case RR may not me favorable
Thank you so much sir 😀👌🏻❤🙏👍
Thank you so much for nice information...
Liked.
It's not advisable to trade less than 2:1 reward to risk
With less risk high reward, even if u haves less win, you still have lot of money therefore it always advisable to have more reward.
thanks sir u made my day easy
Probability and conviction plays role too
I understand risk-reward ratio on this tool, but the part where it says "Qty: xyz" is confusing. I believe that has to do with account size/lot. This needs somw explanation.
Why are you not uploading the rest of the videos, i.e. back testing and strategy? Please upload them. Huge request, come on guys, please support and request him to upload the rest of the video's
Risk taken we get profited we not take e the risk we not get profit
we will put the stop loss we get profited
we want to see the support and resistance level
want to see and want to see the volume also after we want to buy the stock sir.
Thank you very much sir 😊
can anyone tell me where is back testing and strategy videos of this series?
Only for option selling I would prefer to take the trades where risk reward is not favourable
Good content. If RR is not favourable wait for next opportunity to come.
Sir today I sold idfc 47.75 which I bought yesterday at 47.50 after selling it came down 46.20 when I tried to purchase it back I got message that high penalty charges will be applicable on zerodha what does it mean. Can the profit shown is the profit I would have got if would have bought.
Sir made a video on back testing and strategy as a continuation
Very nice video ,plz do a video on position sizing..
Sir can you show some techniques for intraday
I mostly go for trade when risk is favourable
Risk-Reward ratio can be adjusted in certain cases when you have more conviction than usual in a particular trade working out. 🤷♂️
Great content 👍
Sometimes it's better to stay away from the trade if risk reward ratio is not favourable. If you really in the intention of making money on that day there comes the trade even it's not favourable. It's all about trading psychology