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Showing content with the highest reputation on 03/13/2022 in all areas

  1. 1 point
    Hi Peter B, I'm developing a strategy that fits my personality and methods. The strategy is based on the 5-min ORB. After back-testing the strategy, I found 1.5R profit was my sweet-spot. At 1.5R profit, a 40% win-rate is break-even and a 50% win-rate is my target; with an expectation of about a 60% win-rate. A 50% win-rate returns 0.25R profit per trade. A 60% win-rate returns 0.50R profit per trade. For myself (a beginning day-trader) the conservative 1.5R/R reduces the "pressure". I expect to increase the win/loss ratio once I'm better at picking the right stocks to trade. (my back-test yielded a 63% win-rate) This "conservative" strategy fits my personality, methods, and goals. In the past I was swing trading successfully using an extremely conservative method. A friend of mine, who's been trading much longer than I, said, "but you're leaving so much money on the table!" So I let him get in my head and I changed my strategy... and turned a winning strategy into a losing one that I was unable to bring myself to "reset" to my original strategy. I don't need to make a "killing", only this steady ROI to meet my targets. All the best, Russell Landwehr
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