Hello, people!
Today I was given a link to the post of Lesha Maitrade, which is located in his LJ magazine .
I don't like taking pieces out of context., so read the original post, but briefly, then this is what he writes (we argued a little in the comments, so Lesha later made changes to the post. And that, I am impressed by Maitrade. He is a real practitioner and thinker. trader, while many are just saying words, not understanding their meaning):
…Enrage… allegations that, что само соотношение стоп\тейк 1:3, 1:4, 1:5, 1:6 gives you some kind of blt unknown advantage over other players or creates it by itself.
Good visibility, that in general there are no advantages from take closer / further than stop.
By the way, intraday zone of stops and takes (and even swing) on any instrument will definitely ruin you (transaction costs are simply killing).
And the larger the take and stop, the higher the probability of getting into profit. (fewer transactions, the range of hits is greater)
Personally, my recommendations:
– If you are looking for your trading strategy, no need to look for it exclusively with an eye to small feet.
– If, for example, a signal appears in long on your system — DO NOT try to enter it with REDUCED RISK. Try to put your stop in that zone, where you will have real reason to assert, that there will be no bull market in the very near future. (Admit it, this stop cannot be in 1,2,3,4 Tick 
Try to skip entrances, who are far from this zone and enter there, where is she closer. BUT!! Хорошей сделкой это будет НЕ ПОТОМУ, что в момент входа хорошее соот-ношение риск\профит создаст вам преимущество, and in that, что вы входите от поддержки\сопротивления, which you know how to correctly identify according to your own method.
All the advantage — only in your understanding of the market.
That's why, for example, you have to buy from the agreed support even if, when you have no idea, what ratio will you get after closing the deal…
Input from correctly selected support res — ПРИЧИНА. If there is a good ratio or a small stop — this is a CONSEQUENCE. The problem is, that the effect is used by many as the original cause. (the message is, pay more LIKELY of a successful deal, rather than the size of the risk to it)
p.S.
Perfect Reasonable Stop Loss, that, after the triggering of which the market makes a rather impressive movement against the initial position, не выпуская вас даже в Б\У(1), and does not immediately unfold in the direction you originally needed (2). Therefore, analyze your transactions and then, what happened after your stop losses. И узнаете, how reasonable are they.
Actually, then our comments developed as follows.
I:Hello, Lesha. Still, the stop loss to take profit ratio can improve trading results.. Another question, that this ratio can be brought to the point of absurdity, by entering incomprehensible categories, trading principles and others. If the price bounced off some visually visible support or resistance level, then the entrance near it, how did you write, good for a reason, which you indicated as insolvent (BUT!! Хорошей сделкой это будет НЕ ПОТОМУ, что в момент входа хорошее соот-ношение риск\профит создаст вам преимущество, and in that, что вы входите от поддержки\сопротивления, which you know how to correctly identify according to your own method.). And here is my own technique, which gives something to a trader in a chaotic market — this 50% probability of guessing, though, maybe, at certain intervals of time and there may be noticeable repeating patterns. But they, usually, don't live long.
Lesha: I misunderstood your comment.
If your purchase was good «precisely for the reason» Togo, that there is a good value — then why not enter from the bulldozer with this ratio? Maybe the deal is good for the very reason, that you can correctly define support? You understand that what is the reason, and what is SIMPLE CONSEQUENCE?
The problem is, that this consequence is used by many, as a reason
(after that Lech made changes to the post a couple of paragraphs about the effect and the reason)
I:Все верно, do not confuse cause and effect. And in this case, cause and effect are one. Correct definition of support = good SL / TP ratio, they cannot be separated. how did you do it. Well, you cannot tear off the entry point at support / resistance and consider it separately from the SL / TP ratio.
Lesha: Imagine what you have % profitable trades MORE 50%.
Potential in one deal 1:1 because of the big stop
In another deal 1:4 because of a small stop (обоснованного)
Attention question: you will enter the first deal correctly? Correct, because. you already have an advantage (>50%).
And if so — then the size of the foot does not matter for you, but only the probability of taking profit plays a role
I:Well done, Lesha.
In those conditions, which you provided me, I must enter into both transactions, counting on profit. But the mistake is this — there are two different variables in this system. In one, the ratio 1k1, in the second 1k4. And if so, then it makes no sense to operate with such an indicator, as the ratio of profitable trades, which you define> 50%. After all, our goal is not % profitable deals, and % profit on the account at a specific level of risk per trade, right? For even on backtests, which I do not perceive as noteworthy information, we will not understand, due to what ratio is the main profit achieved. Maybe we'll have to throw away those deals, in which the ratio is 1k1 because they are on 50 прибыльны, and on 50 убыточны? Or even unprofitable for 65%? And the profitability and the number of profitable trades are achieved due to that system, where the ratio 1k4, and the probability of profit is about 80%? For a correct comparison, you need to use either one ratio or another. That is, again, break this system into two and analyze.
Generally, if there are any more comments — they will be there.
I presented my personal opinion about this ratio in the lesson of the course , который называется .
Again: this ratio can be a good foundation for a trading system. you can and should start from it. Think, in what cases is it higher, in which below. For example, I will now move away from stops in 50 pp on the eurodollar and take in 150 pp and above, because I'm on flat, placing a stop close to the minimum, I get a loss and, following the logic of the process, keeping in mind the Barishpolz principle in sliding channels, deploy position, and the price returns and again I get a stop, unfolding again, etc… On flat it kills a completely similar approach, so I will decrease both stop loss and take and introduce a mandatory trailing, and I will devote April to testing this method. Yet again, collecting money now, to open a trading account with Dukascopy forex bank. I'm tired of dumb execution and slippage in DC.
What do you think about the ratio of SL / TP?
In general, I recommend LJ Maitrade, when he writes something about the market — need to read and think.
