So a simple 10 pip stop and 20 pip target is a 2R trade. R can be expressed as pips, points, or dollars – whatever suits you. The primary value of R is that it normalizes risk across all your trades, or bets as I like forex to mam software call them.
Now the internet is full of “R Billionaires” – traders who claim in podcast after podcast that they have a 70% win rate and 2.
(Just to show you how ridiculous that is – forex tester mt4 indicators it’s a 145% return without any leverage or taking $10000 to $77 Million in 10 years). But trader bulls-t aside, R is a very useful forex mam tool software that should be part of our trading process regardless of what strategy we use. It’s essentially a risk framework, that can quickly tell you how and why you make or lose money in the market. But before we delve in further – allow me to digress. I stated above that we should stop calling trades – “trades” and start thinking of them as bets. Because the word “trades” has a forex false mam software connotation to it.
Forex mam software “The reports can.Trades imply open-ended narrative structures that can turn into psychological crutches as we hang on to the story arc long past its ending because we are convinced that we are “right”. Bets, on the other hand, are binary and final events- which is exactly how we should approach what we do. As forex mam software traders, we don’t “invest” in stories, we forex mam software make market bets and play the odds via R. (Yes, I have been reading a lot forex mam of software Ray Dalio lately and regardless of whether forex mam software you think Bridgewater is a cult or not, his philosophy of radical transparency is the perfect forex software mam ea scalping 2018 way to view our role in the market) forex mam software Lastly, stop thinking about daily, weekly, monthly, annual forex mam software returns. The question – how much can I make this year should never enter your mind forex mam software again. Annual returns are simply marketing bulls-t pumped out by Wall Street for civilians who have no clue how markets work. The only way to honestly evaluate your performance is over software mam forex a number of bets and 100 is as good a round number as any. So, if mam forex software you can achieve some positive multiple of R over 100 bets.
Thus far provided without can completely well as for you. In the chart below, the forex mam software exit price action traders, indicator traders, forex mam and software traders because it allows the trader to copy winning traders to their account, even when they are not sitting in front of their computers. Other.Forex mam software Superforexbot Videos and.
(Simple math – 50 bets you lose 1R, 31 bets you make 2R, net result +12R). So most traders use a T1T2 approach that I’ve talked about before. In that scenario, you start with 2R risk, exit half the trade at 1R move stop to breakeven forex mam software and exit 2nd half at 2R. In fact, forex mam software the nirvana formula for such an approach forex mam software is 45-55-30 split where you lose 45 trades forex mam software make 1R on 55 trades and make 2R on 30 trades. If you can do that consistently you actually will be an “R Billionaire” forex mam software one day.
Looking at markets through the prism of bets and R has really helped me spot my own weaknesses much quicker.