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Tell us about the profit and loss ratio and stop loss


do not want to pave too much directly on the dry goods real dry goods whether you are doing stocks or futures or foreign exchange Forex rebate for you other products no matter how you are judged how to buy and sell to later you will return to the establ getforexrebatehment of Forexrebateforyou systems up if you do not give up the establishment of trading systems need to unify clear buying and selling standards this has been said a lot of the key to say that the stop highestrebateforex range and the profit and loss rebateforexindonesia of things a lot of seniors and textbooks mentioned that the best profit and loss ratio is 1:3, that is to say, the stop loss is 10 price levels, then profit should be 30 price levels this statement itself is not a problem and there is nothing right or wrong but the key is that many people take the profit and loss ratio of 1:3 as the Bible actually think that other profit and loss ratio is not appropriate or even wrong idea this is very problematic profit and loss ratio is 1:3 or 1: 2 or 1:1 or other multiples of this does not have an impact on the results of trading the real impact on the results of trading is the use of a fixed profit and loss ratio under the premise of the win rate theoretically no matter what method to judge buying and selling as long as you use the standard is unified consistent clear for example, every day at 9:35 am buy up profit and loss ratio 1:3 that your theoretical win rate is about 25% using profit and loss ratio 1:2 then your theoretical Generally speaking, as long as you stick to a fixed profit/loss ratio and consistent buying and selling conditions, your trading results will be at least no loss or a slight loss if you statistically backtest and find that a buying and selling strategy with a fixed profit/loss ratio can actually win more than the theoretical win rate, then this trading system can be considered. For example, if you find a trading strategy with a profit/loss ratio of 1:1 has a win rate of 60% or more, a trading system based on this trading strategy is profitable and can be considered with a low profit/loss ratio with a high theoretical win rate and a high profit/loss ratio with a low theoretical win rate, as long as you use a fixed profit/loss ratio, the actual backtest win rate is higher than the theoretical win rate, which can be considered. To say that this book will not tell you a perfect trading system not only need a clear stop-loss standard this stop-loss standard caused by the amount of loss of principal and your profit and loss ratio combined For example, if you use a fixed profit and loss ratio of 1:1 trading system your theoretical win rate is 50% in the cumulative trading 200 times more than the case of 8 consecutive stop-loss probability is almost 100% If you use a single stop loss amount is 5% of the total capital then there is bound to be a day when you will have a loss of about 40% If you use a single stop loss amount is 3% of the total capital then you are bound to have a day when you will have a loss of about 24% This is even if you are very rational basic continuous stop loss also strictly implement the premise of the trading system if you cant control yourself without a strict stop loss then it is even less if you If you use a fixed profit-loss ratio of 1:2 trading system your theoretical win rate is 33% in the case of cumulative trading more than 200 times the probability of 15 consecutive stop losses is almost 100% even if you use a single stop loss amount of 2% of the total funds then you are bound to have a day you lose about 30% loss 1:3 profit-loss ratio of trading systems have not been statistical not to say the limit of the situation will only be more exaggerated "shooting eagle The original "Legend of Heroes" Genghis Khan has a sentence to the effect that: careful 10,000 times is not much, because carelessness and lost his head once is too much, so when you start to build their own trading system in the design of their own profit and loss ratio and stop loss ratio must consider their own trading system in extreme cases will face what kind of loss even if the odds will not appear several times in life

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