1:7 Trading Strategy - Page 24
Page 24 of 24 FirstFirst ... 142021222324
Results 231 to 237 of 237

Thread: 1:7 Trading Strategy

  1. #1
    Trader ara's Avatar
    Join Date
    Dec 2013
    Posts
    1,834
    Thumbs Up
    Received: 106
    Given: 184

    1:7 Trading Strategy

    I hope the admin will approve this trading journal thread. I want to use this thread as an observation and as a tester for a strategy, initially I will use a demo account, if there is some weakness, then I will try to improve this trading system until it becomes a strategy that generate good profits, though not big, at least it can generate a good profitable strategy, and if I get good results, then I will apply it in a real account.

    DESCRIPTION
    Idea
    I have an idea to create a trading system by relying on Risk:Reward Ratio. Why? Logically ... the forex market is up and down. There are only 2 possibilities. But it's not as easy as what we thinking about. Because in fact, getting consistent profit in forex is not easy, because there are other factors psychologically. However, if we think mathematically, then the chances of winning in each trade are 50%, yup ... of course, that is absolute by mathematical formula (without any influence of psychological factors). So, winning trade vs losing trade should be 50%:50% if we trade without analysis with 1:1 of SL:TP. Then I want to create a trading system by favoring the ratio of risk and reward. Here I use the name "1:7 Trading Strategy" because I will use the ratio 1:7 of Risk:Reward. This means I use a ratio of 1 SL: 7 TP. Why I do use 7? Why I don't use 1:2 or 1:3? The answer is : I love the number of "7". Hohohoho.

    Market Analysis
    What is the strategy of market analysis that I used for this trading system? The answer is "ANY", yup, whatever the analysis, it can be applied.
    Like what I said before, I do not take a fixed analysis strategy. I say that the chances of wining trade is 50% if we trade without analysis with 1:1 Risk to Reward ratio. I want to know how if I used 1:7 Risk to Reward ratio without analysis, but wait a minute...., oh oh no..., I think I must analyze the market for my trading in order to make the reward ratio is bigger then risk. Okay...okay... I will do analyze the market with whatever type of analysis.

    Money Management
    At first I will divide equity to 20 trades, so I have 20 trades chance. But I will use a demo account, and I will use the smallest lot size. So I would say that the strategy will fail if I get 20 losing trades in a row even though there is still equity remaining in my demo account. Because I do not want to create multiple demo accounts for this trading journal just because I get many stop out. For stop loss and take profit, I will initially set SL = 15 pips and TP = 105 pips (7 * 15 = 105).

    Conclusion
    Once again I speak, I created this thread to build a trading strategy by relying on Risk Reward Ratio. I do not rely on skills in market analysis. So I hope you understand, understand, and again....understand....., also giving a good contribution to my trading journals.
    Because : I am here on this trading journal is just for LEARNING, not for TEACHING. Thank you

    Not allowed!

  2. #231
    Trader ola4real's Avatar
    Join Date
    Mar 2018
    Posts
    8,262
    Thumbs Up
    Received: 47
    Given: 20
    Quote Originally Posted by simisola View Post
    There are strategies that can give the trader higher rewards, but someone that is doing only scalping might not understand this, the long term traders have better rewards from this market especially when they analysis a pair and enter when the trend is just about to reverse, they can earn lots of money from the market this way.
    We have to make sure that we locate the forex strategies who can get us the higher reward, this is what i know that can make forex traders to trade and get big income in their works. If that big income is now so regular, it will be the means in whom the forex traders will get to gain his success faster by using the higher reward against the risk in whom the trader is taking.

    Not allowed!

  3. #232
    Trader
    Join Date
    Aug 2018
    Posts
    1,583
    Thumbs Up
    Received: 8
    Given: 7
    Traders can have so high risk reaward ratio as 1:7 if they trade on support resistance levels where it is possible to place tight stop losses. If trader opens order in the middle of the market so he will never get so high risk reward ratio. Support and resistance levels are the best place to open orders as market movements will be big.

    Not allowed!

  4. #233
    Trader Toyen's Avatar
    Join Date
    Apr 2018
    Posts
    7,692
    Thumbs Up
    Received: 40
    Given: 13
    Quote Originally Posted by Giedra View Post
    Traders can have so high risk reaward ratio as 1:7 if they trade on support resistance levels where it is possible to place tight stop losses. If trader opens order in the middle of the market so he will never get so high risk reward ratio. Support and resistance levels are the best place to open orders as market movements will be big.
    It is not easy to say that you will have the higher risk to reward ratio of 1:7, this is a great idea for traders when it is possible. My only considerations is how possible will it be for traders to have the reward 7 times more than the risk the trader is taking. I have read many traders asking about possibilities of this likewise, so i think more training can get this achieved.

    Not allowed!

  5. #234
    Trader ola4real's Avatar
    Join Date
    Mar 2018
    Posts
    8,262
    Thumbs Up
    Received: 47
    Given: 20
    Quote Originally Posted by Giedra View Post
    Traders can have so high risk reaward ratio as 1:7 if they trade on support resistance levels where it is possible to place tight stop losses. If trader opens order in the middle of the market so he will never get so high risk reward ratio. Support and resistance levels are the best place to open orders as market movements will be big.
    I know that it is not what is not possible for forex traders to have their risk to reward ratio of 1:7. But if we will tell ourselves the truth, the forex strategies how will get that done for trader are not just common, it is good that forex traders take caution on them, that will give the trader the needed safety in their account. If forex strategies is so powerful, it will surely give the 1:7 risk to reward ratio.

    Not allowed!

  6. #235
    Trader
    Join Date
    Jul 2017
    Posts
    3,706
    Thumbs Up
    Received: 51
    Given: 7
    Whatsoever trading strategy that we are trying to trade the forex market with must be thoroughly understood, learned and mastered how it works because that is the key to reduce the risks and increase the level of the winnings and it does not come over night but it takes time and hard work for us to start developing those things that would work for us. Learning increases the chances of getting more of the good trading skills which shall in turn give us better understanding of the ways of the forex market over time.

    Not allowed!

  7. #236
    Trader ola4real's Avatar
    Join Date
    Mar 2018
    Posts
    8,262
    Thumbs Up
    Received: 47
    Given: 20
    Quote Originally Posted by Toyen View Post
    It is not easy to say that you will have the higher risk to reward ratio of 1:7, this is a great idea for traders when it is possible. My only considerations is how possible will it be for traders to have the reward 7 times more than the risk the trader is taking. I have read many traders asking about possibilities of this likewise, so i think more training can get this achieved.
    What you have pointed out is my plight on this article too. It is easy to say that you will get to have high value reward against the risk you are taking, but it is when you are using your forex strategy before you will realize that it is not working as you have supposed it. If you can have the forex strategy who will give the 1:7, the forex traders can be sure that he will be successful so fast.

    Not allowed!

  8. #237
    Trader
    Join Date
    Jul 2017
    Posts
    3,706
    Thumbs Up
    Received: 51
    Given: 7
    Quote Originally Posted by ola4real View Post
    but it is when you are using your forex strategy before you will realize that it is not working as you have supposed it.
    In fact, we would not know the results which our trading strategy is going to be producing on just stipulating about it but it is whenever we are able to start trading with it and reviewing the results of losses and winnings that we would come to understand the risks ratio to winnings, and that is why it is very important to make sure that we are willing to test out the trading systems on the demo accounts before we come live to trade with them.

    Not allowed!

Page 24 of 24 FirstFirst ... 142021222324

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •