This guy is the only person on youtube explaining the risk to reward ratio in depth. He's breaking it down step by step making it understandable for all kinds of minds. I appreciate the approach and effort of the video, thank you for this.
I’ve been thinking about this for the last week. So glad I came across your video. Sic man. You explained it really well. I feel I can start to collect data. I wasn’t happy with guessing win:loss and r:r ratios either, and tying in position size and the life of the trade has really been useful. 🙏🙏🙏💰
it also depends on the situation! and without recording this "situation" in a log there is no way to know if it actually does have success or just luck. i also take trades with negative risk-reward quite some times, if they do have like a 80% rate of success. like momentum scalps or stuff like this. but other trades usually have a large reward, the mix it what makes it work, and knowing if its worth to place the limit order or better just to let it be.
Bro...this is one of the best videos on trading bottom line...understanding your success rate is one of the top elements of trading...I thank you tremendously ... i am truly inspired to enhance my success rate.......i am only at 44% rate now and go for 3:1 and up 25% within 5 months but need to be at 75% of a success rate
Just sharing my experience in trading strategy forward testing. 3:1 or 2:1 risk reward ratio gets below 20% chance of hitting take profit. I changed into 4:3 which hits roughly 47% win and 53% loss on trades but the profit is over 7%. (if you use the ATR consistently on how much you risk per pip on a certain currency pair). By the way I'm using H4 timeframe and can still take profit even on ranging markets. Just sharing. 🙂
BRO....this is an amazing great video...excellent teaching.....i have watched hundreds of videos and your the first to explain what is the succes rate of that risk to reward ratio...brilliant... funny how i ran into that tony Robbins clip months ago and play it all of the time
at 2:08 im thinking, they dont even think at the risk of not getting their reward it's a 2 factor formula win rate and average R:R over the period. these 2 factors can be combined to get a positive result for example i can be a coin flipper (50% Win Rate) but if my average risk reward is 1:4 i dont care i lose half my trades looking inside your exits over many trades is a gold nugget thank you
This is such an amazing video! I keep coming bacl after long periods and everytime i watch i pick up something that i didn't notice or consider before! After multiple times of watching tho there is 1 thing id add and thag is the fact that theres one more aspect you need to consider and that is time, if say 1:6 on a lower success rate is still more profitable than 1:3 on a higher success rate you also need to consider how long does it take to achieve that success rate since a higher RR means less opportunities so if you can open say 100 trades on a 1:3 in a month while on 1:6 you can open 50 then 1:3 is still more profitable over a month
Hey Nicholas I'm a new trader from Minnesota, and was wondering what do you mean when you say 3:1 risk in the video. Also when I checked your youtube page and i didn't know what video to start with do you have any recommenendation what video that i should watch first.
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This guy is the only person on youtube explaining the risk to reward ratio in depth. He's breaking it down step by step making it understandable for all kinds of minds. I appreciate the approach and effort of the video, thank you for this.
I’ve been thinking about this for the last week. So glad I came across your video. Sic man. You explained it really well. I feel I can start to collect data. I wasn’t happy with guessing win:loss and r:r ratios either, and tying in position size and the life of the trade has really been useful. 🙏🙏🙏💰
Glad it has helped! Tracking and paying attention to the right data is seriously a game changer
Thank you for this video. It's a confirmation of what i've been thinking all along.
it also depends on the situation! and without recording this "situation" in a log there is no way to know if it actually does have success or just luck.
i also take trades with negative risk-reward quite some times, if they do have like a 80% rate of success.
like momentum scalps or stuff like this. but other trades usually have a large reward, the mix it what makes it work, and knowing if its worth to place the limit order or better just to let it be.
Bro...this is one of the best videos on trading bottom line...understanding your success rate is one of the top elements of trading...I thank you tremendously ... i am truly inspired to enhance my success rate.......i am only at 44% rate now and go for 3:1 and up 25% within 5 months but need to be at 75% of a success rate
Great explanation as always! Keep up the great work!!
Just sharing my experience in trading strategy forward testing.
3:1 or 2:1 risk reward ratio gets below 20% chance of hitting take profit. I changed into 4:3 which hits roughly 47% win and 53% loss on trades but the profit is over 7%. (if you use the ATR consistently on how much you risk per pip on a certain currency pair). By the way I'm using H4 timeframe and can still take profit even on ranging markets. Just sharing. 🙂
Einstein, make things as simple as possible but not simpler. It's a fine art.
Tracking the win rate at each risk level is freaking genius!
This is such an informative and helpful video. This could boost my success rate way off the roof.
Thanks Nicholas always top notch.
You're welcome. I hope it does boost your success rate!
- Nicholas
BRO....this is an amazing great video...excellent teaching.....i have watched hundreds of videos and your the first to explain what is the succes rate of that risk to reward ratio...brilliant... funny how i ran into that tony Robbins clip months ago and play it all of the time
This has really opened my eyes hey, thanks !!
at 2:08 im thinking, they dont even think at the risk of not getting their reward
it's a 2 factor formula win rate and average R:R over the period. these 2 factors can be combined to get a positive result
for example i can be a coin flipper (50% Win Rate) but if my average risk reward is 1:4 i dont care i lose half my trades
looking inside your exits over many trades is a gold nugget
thank you
This is such an amazing video! I keep coming bacl after long periods and everytime i watch i pick up something that i didn't notice or consider before! After multiple times of watching tho there is 1 thing id add and thag is the fact that theres one more aspect you need to consider and that is time, if say 1:6 on a lower success rate is still more profitable than 1:3 on a higher success rate you also need to consider how long does it take to achieve that success rate since a higher RR means less opportunities so if you can open say 100 trades on a 1:3 in a month while on 1:6 you can open 50 then 1:3 is still more profitable over a month
Important subject to cover and something Ive actually been working on at the minute! Very complex but, as usual expertly explained!😊
Thanks John! Surprised you've had time to work on it around your blossoming Hollywood career
How do you calculate your success rate?
Divide winning number of trades by total number of trades and multiply by 100. You will get your success rate. Hope that helps
The Kelly Criterion. Nice.
Tracking your trades, what data exactly should be recorded (i.e. open, close, position size) what else?
Amazing explanation
Thanks Shahrin!
What if I have exit in certain points?
Great content .
So true I experienced it .
Another great video, excellent advise!
Great vids sir, may i ask for the song name that plays in the background right before the outro?
Hey Nicholas I'm a new trader from Minnesota, and was wondering what do you mean when you say 3:1 risk in the video. Also when I checked your youtube page and i didn't know what video to start with do you have any recommenendation what video that i should watch first.
If you still need to know.. He means risk $1.00 in an attempt to make $3.00, essentially.
Great insightful video bro! expect many of my comments in the future lol
Thanks buddy! Glad you found it helpful.
perfect
Thanks for this Niki. Highly valuable thoughts
Thanks buddy!
😁😁. I do try.
Good idea abt risk more(perhaps 3%) for a 1 to 1 if the win rate is high
😊. 24 hours in a day. I use every one of them!😉
you're an inspiration to us all!
Sorry i didnt get your point 😌
Try to make your videos by getting to the point much faster
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🔹 Add us on Instagram: instagram.com/duomoinitiative/
🔹 Our second channel for financial news and analysis: ua-cam.com/users/MarketMoversFinancialNewsandAnalysis