2021-10-17 01:09:17
This is why I have not steered away from rule based trading from the day it was introduced to me.
For me, consistent rules = consistent results. At the end of the day. Any strategy is just an edge in the market. There’s nothing special with how you trade as long as you have an edge. However, having a rule set that you can use in every scenario that you face is what builds your consistency as a rounded trader. We don’t usually scalp or “ping pong” as it’s not our style. However, rules are there to be used at your disposal.
In terms of risk to reward. We see the bigger picture. Example, let’s say you ping pong style trade 20 trades in one week. That’s 20r of your account that you have risked. Let’s say each trade yielded 10r and for this example let’s say you won them all as social media show “perfect win rate”. So you risked 20r for 200r return. Your true risk to reward for that week is 1:10. That’s simply our view.
However, we know that you won’t win every single trade and the more you trade the higher the exposure and the more losses you will face. For us it’s about finding the ideal and best set ups that our rules provide and essentially trading less and banking where we can for a gradual exponential growth of our accounts. It’s true investing.
Simply put. Have your rules and stick to them. Your best teacher is chart time.
Hope you all enjoyed the post, I know it’s been a while
530 viewsTanz, edited 22:09
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