Generally, the higher the win-rate, the lower the reward:risk ratio, and vice versa. (Not Clickbait) This is important to understand in order to avoid being fooled by people who present you with their “amazing” trading strategies.
Oftentimes, these people will claim that their strategy have extremely high win-rates of 80-90%, but is that really what you should be looking for? I saw someone recently used the analogy of a Volvo vs. Basically, it went like this: Tesla is a great car and feels wonderful to drive, plus it takes you to where you need to go in belajar trading forex robot profitable kota sby jawa timur the shortest amount of time possible.
But when something goes wrong and one of the parts fail, you’re screwed. The best Tesla arbitrage ea isn’t moving anymore, and you don’t even know which part failed, much less how to fix it.
Best arbitrage ea Its a downtrend.With the Volvo, however, you may not reach best arbitrage ea your destination that fast, but you know best arbitrage ea that you will eventually make it there, best arbitrage ea each and every time. When the best arbitrage ea car stops, you know that some googling and improvising is all you need to best arbitrage ea get it going again. Let’s say for example that your radiator is leaking. All you need is some tape to seal it temporarily until you can make your way to a shop. Now imagine the Tesla is a high win-rate strategy and the Volvo is a best arbitrage ea high reward:risk ratio strategy. With the best ea arbitrage high win-rate strategy, things go really well until it stops working. When something goes wrong, you risk having to pay back all your wins for one stupid mistake. On the other hand, the high reward:risk strategy will still make you money regardless of your occasional mistakes and lack of discipline. For forex trade copier 2 example, ea best arbitrage a win-rate of 40% and a 3:1 reward:risk ratio gives you best arbitrage ea room to lower your win-rate by another 10% and still make a profit.
Open the Report tab pips take profit once it is reached, all positions will be closed best arbitrage ea and the account will be unsubscribed from a money manager. Not blame the tool for the job and.Best arbitrage ea Indicator window.
Machines don’t make mistakes the same way best arbitrage ea as humans do, and they are therefore much better suited to trade with high win-rate strategies. So, when you are developing your trading strategy, or even just trying to optimize your current strategy, focus on improving the reward:risk ratio arbitrage best ea of the strategy. Don’t try to boost the win-rate at the expense of best arbitrage the ea reward:risk ratio. It may best ea arbitrage look cool for people who are trying to sell their strategy to others, but best arbitrage ea it’s not very useful for real-world trading. With a high reward:risk strategy, you know there is room for mistakes and unexpected events, which by the way do happen from time to time no matter how good you are. Because of this, you will also develop much greater confidence in your strategy, which is helpful in stopping you from best making arbitrage ea one of the main beginner mistakes in trading: constant strategy hopping.