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Thread: Win/loss ratio question

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    Bullish crazybird168's Avatar
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    Question Win/loss ratio question

    I have sometimes read that many traders have about a 50/50 win/loss ratio but still manage to do good because the winners are so great and the losses are cut short.
    However, I also come across the view that a higher ratio of wins to losses is better, for obvious reasons.

    I'm a little confused as to what to think about win/loss ratios. Should I strive to have a higher amount of profitable trades than losses or should I just focus more on letting the profitable trades ride and cutting the losses short?

    My gut feeling is that it comes down to the individuals trading strategy, MM and such but I'd definitely like to get some others' opinions.

    Thanks

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    Every method is good if You feel comfortable with it.

    If You're not convinced to win/loss then don't use it.

    Try to define Your money management plan.

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    of course, i can not agree with you more!sm_smile




    Quote Originally Posted by fxmaster81 View Post
    Every method is good if You feel comfortable with it.

    If You're not convinced to win/loss then don't use it.

    Try to define Your money management plan.

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    Quote Originally Posted by crazybird168 View Post
    I have sometimes read that many traders have about a 50/50 win/loss ratio but still manage to do good because the winners are so great and the losses are cut short.
    However, I also come across the view that a higher ratio of wins to losses is better, for obvious reasons.

    I'm a little confused as to what to think about win/loss ratios. Should I strive to have a higher amount of profitable trades than losses or should I just focus more on letting the profitable trades ride and cutting the losses short?

    My gut feeling is that it comes down to the individuals trading strategy, MM and such but I'd definitely like to get some others' opinions.

    Thanks
    ok if you loss less than gain ,that is if sl set less than tp then definitely win even can maintain 50/50 winning.
    fontu

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    win is douple the loose so if you decide to make take profit 20 pip you make stop lose 10 pip to minimizes your losses the profit will come if you control your losses

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    Quote Originally Posted by hesham_bakr View Post
    win is douple the loose so if you decide to make take profit 20 pip you make stop lose 10 pip to minimizes your losses the profit will come if you control your losses
    but in some systems the SL is huge compared to the TP, for example 50/15. and as traders who use it say, they are managing quite well, how do you comment it?

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    i think the good rario is 1:1
    this is fair
    some will say 1:2
    and some use 3:1
    but the best is 1:1

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    Quote Originally Posted by themask View Post
    i think the good rario is 1:1
    this is fair
    some will say 1:2
    and some use 3:1
    but the best is 1:1
    there's no the best ratio, it's according to your self

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    Quote Originally Posted by scheinwerfer View Post
    but in some systems the SL is huge compared to the TP, for example 50/15. and as traders who use it say, they are managing quite well, how do you comment it?

    Hi scheinwerfer and everyone ,

    The reason for the huge SL level is the market is volatile and a 1:1 ratio in that case means that i will get stopped maybe too soon before the pair start moving with me .

    If you didn't get it let me clarify it more :

    The market moves in trends and while it's moving in a trend it tends to have retraces to certain levels called ( support / resistance ) now if you are in a down trend and you placed a sell order while the market was about to retrace 30 pips before continuing the trend you would get stopped with a 1:1 ( 15/15 ) ratio while if you stayed you would have ended a winner .


    The conclusion is that some systems use stops that might sound strange to you but they are actually based on good technical analysis .

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    ceestech
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    if your win is not greater than your losses then i don't see a reason why your keep trading because you only making the broker richer.

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    Every time you trade, set your targets to be higher than risk. My risk t reward ratios is 1:2, that is for every 1 risk, I have targets for 2 rewards

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    in order to remain able to get more profit than loss then you should get disciplined trader is using the strategies and systems used in accordance with a predetermined rule and has been proven strategy can generate profits consistently to try it on demo account or using the strategy tester.

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    Discipline plays an important role for every trader. A Strategy must not have a 70% or more winning to be good. I have seen a strategy that has 40/60 win to loss ratio, the drawdown is just 4% with over 400% equity growth and higher returns

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    Quote Originally Posted by ceestech View Post
    if your win is not greater than your losses then i don't see a reason why your keep trading because you only making the broker richer.
    if your trade isn't going to good. i think you should be concentrate on your mistake. if you will improvement your mistake. i think then you can make good profit.

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    Quote Originally Posted by dareking View Post
    if your trade isn't going to good. i think you should be concentrate on your mistake. if you will improvement your mistake. i think then you can make good profit.
    By analysis of the Mistakes we are able to know what are the short comings and then work on them to improve so that we can both learn and make Profits.

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