Profit / Risk Ratio 65+/1

Recently, the fashion has gone on systems with a very low percentage of winning trades and a very high profit / risk ratio.. This is explained by the fact that, ostensibly, we do not guess the direction of movement, we're just playing our own “положительное матожидание”. Only it is not clear why they decided that they have positive. Understandably, what if the instrument grows or falls a lot all the time, then in this period we will get profit for any trend system and for any profit / risk ratio. here you go, for example, let's take Apple's share (AAPL), which is one of the fastest growing in the American market. With the simplest trend system and minimum stop, we get the ratio of profitable / unprofitable trades 10/90 with a profit / risk ratio 65/1. Believe, the ratio can be made more and less — the system will still make a profit.

but, still need to take into account the fact, that sometimes the break between profitable trades reaches 5 and more years. Think, it will be hard during 5 and receive only losses for more years.

Belief in the system can fade away, and fairly fair, since a profitable deal may not come — stock может перестать расти или падать такими же темпами, like how it happened with Microsoft stock — while it was a promising and growing company, stocks were growing very quickly and a lot, but then the company became a giant and there was nowhere to grow, she just stopped.

  A lot about Oil
Scroll to Top