Saturday, October 17, 2009

Trading Plan: Trading at least 2 Lots

The ideas is to trade at least 2 Lots so at 1:1 Risk Reward Ratio a small profit can be cashed in.

On the trading system that I am using a 1:1 Risk Reward Ratio is has a probability of 90%.

Higher Risk Rewards larger than 1:3 have a probability of still 60%.

As you can see on the crude oil market screenshot, exiting the 1st position early on always pays off, since after a 1:1 Risk Reward is gained usually the prices retrace anyway so even a re-entry would be possible with the already archived points a so called "free trade" can be made.

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