If I do 1.5/1 reward to risk....
Is it better to space the lot size according to the reward or the risk?
My opinion it is better to space it according to the reward

yisrael wrote: If I do 1.5/1 reward to risk....
Is it better to space the lot size according to the reward or the risk?
My opinion it is better to space it according to the reward

yisrael wrote: Mon Feb 14, 2022 1:06 am My tp is 1 atr and my stop loss is at 1.5 the value of atr...
So reward to risk ratio should be ....(let me know if I get this right?)..
Reward/Risk=1/1.5=0.667
Wow ...that is terrible!!!
I should do 1.5 tp of atr and 1 stoploss of atr
or
Is it better to do a multiple of it , like 3/2

Yeah, if you are risking 1.5 to make 1 then your win rate needs to be over 66 percent for it to be a wining strategy. That's fine if that proves to be the case over a reasonable number of trades. If not the rules based strategy needs to change, can it cope with a higher profit target? do the entry or exit rules need changing? Only testing will tell, any strategy that plots over the red line is the goal.

Lot size needs to be based on account size, you are willing to risk x percentage of your total account on any single trade, conservatively 1 or 2 percent. If you had a number of strategies you might consider being more conservative with a lower win rate strategy and more aggressive with a higher win rate strategy - higher win rate tends to be smaller reward and quicker to target.

Ogee wrote: Mon Feb 14, 2022 2:15 am Yeah, if you are risking 1.5 to make 1 then your win rate needs to be over 66 percent for it to be a wining strategy. That's fine if that proves to be the case over a reasonable number of trades. If not the rules based strategy needs to change, can it cope with a higher profit target? do the entry or exit rules need changing? Only testing will tell, any strategy that plots over the red line is the goal.

Lot size needs to be based on account size, you are willing to risk x percentage of your total account on any single trade, conservatively 1 or 2 percent. If you had a number of strategies you might consider being more conservative with a lower win rate strategy and more aggressive with a higher win rate strategy - higher win rate tends to be smaller reward and quicker to target.

About lot size it is adjusted to 2% of account balance....so I am good to go there

I see what you saying about reward/risk
Basically I see that high reward/Risk is geared towards trend following strategies.
1/1 is uncertainty
1/1.5 is very dangerous...possible reversal time

will you post the EA?

I'm not counting on it. I will be very surprised.

ionone wrote: Sat Feb 19, 2022 8:55 pm will you post the EA?

I don't know...maybe,maybe not
The bot in my opinion is hot garbage....
It does almost 30,000 trades a year..with a 55% winarate....
The money that it makes it is by brute force...not the smartest stategy...

But when I develop a bot that has 100% to 120% return a year with the maximum drawdown of 500 $ ...I will post it.

I am currently working on trend /turtle trading stategy with the dochian channel and the results are looking promising