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  • Strategy Testing

    What win rate and risk to reward ratio makes a strategy "good"? What should I be aiming for when testing a system? Is it possible to have a win rate as high as 60 percent with a 1:2 risk to reward strategy or should I aim lower.

  • #2
    Is it possible to have a win rate as high as 60 percent with a 1:2 risk to reward strategy or should I aim lower - yes it's really really damn possible anyway. But I do not recommend you to fix yourself on some systems or something like that. Do all manual.

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    • #3
      Gholbizel is right. Do not push yourself to a fixed risk to reward ratio. Feel comfortable with your strategy first and then improving the ratio will come along.

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      • #4
        Originally posted by Pattybear View Post
        What win rate and risk to reward ratio makes a strategy "good"? What should I be aiming for when testing a system? Is it possible to have a win rate as high as 60 percent with a 1:2 risk to reward strategy or should I aim lower.
        What you should look is the expectancy curve. A quick search on google will bring up lots of answers.
        https://blackstonefutures.co.za/why-...-rate-succeed/

        60% and a 1:2 is awesome! and not easy to obtain. If you have one, lucky you! All the best.
        Last edited by nfx; 09-24-2019, 12:06 PM.

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        • #5
          Most of my acquaintances are focused on the percentage of profitable deals at least 50%. If you get more, it's great, if you can judge less that something went wrong. Maybe you are tired, or it is time to change or update your strategy. By the way, it is really necessary to do it periodically, because the market is also reconstructing because of its activity and sometimes it is useful to introduce new indicators or approaches to discover new opportunities.

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          • #6
            First of all, it is essential to decide on your strategy. The choice must first be based on your understanding of the workflow and your convenience to you. You can then adjust the risk/profit ratio yourself when you have mastered one strategy well. If you rush from strategy to strategy, in the end, you will lose valuable time and will not learn to trade adequately. Your winning rate may reach 60% when you risk a reward of 1:2, which is even very good, but over time I think you will reduce your winning rate to 55%. For beginners, if the winning trades percentage is above 50%, that's a win. So if this strategy suits you, then use it and develop in its understanding.

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