# Distribution of R-multiple trades



## pavilion103 (13 October 2011)

Obviously the main goal of a trading system is to have positive expectancy and as high positive expectancy as possible. 

This can be achieved with a variety of combinations of accuracy and avg wins vs avg loses.

There are many different combinations are there are systems. 

I'd be interested to know what types of results some of your systems produce in terms of distribution of R-multple trades. 

I've often heard that most trades are boring and that there may only be a handful of really high R-multiple wins (e.g. 10R+) which make a system highly profitable. 


Do people tend to produce 4R-7R+ wins frequently, or are you happy taking 1R, 2R, 3R wins, with larger wins coming fewer and further between? 

One of my main struggles has been being greedy and letting 2-3R wins turn into 1R wins or breakeven, in the search of 5R+ wins (rather than respecting 2-3R wins and cashing in a profit when there are signs of weakness).


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## tech/a (13 October 2011)

It depends largely on the market we are trading.
I haven't traded a long term system since 2008
At the time of liquidating the final R:R was 10.8 : 1
Current --- this weeks R/R on 11 FTSE trades is
3 x 8 tick losses
5 x B/E trades
3 wins totaling 98 ticks 
That's around 4:1

It really doesn't matter as long as you know your long term closed trade expectancy.
What your edge is and keeping an ever present eye on how you can increase your R / R
Much easier to do in discretionary trading.
Accepting long strings of B/E trades increased my bottom line dramatically.
Tests patients but teaches you to be exactly that--- Patient.


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## pavilion103 (19 October 2011)

Anyone else willing to share what some of their R-multiple distributions look like. 

What percentage of trades are 5R+, 10R+ etc ?


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## skc (19 October 2011)

pavilion103 said:


> Anyone else willing to share what some of their R-multiple distributions look like.
> 
> What percentage of trades are 5R+, 10R+ etc ?




My system parameters are quite different as my pairs trading is not a trend following system. But here's are the stats (I've normalised the avg loss to $200).

Avg win = $109.4
Avg loss = $200

Win % = 82.4%

I don't have a single win > 2R.


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## R35 (19 October 2011)

pavilion103 said:


> Anyone else willing to share what some of their R-multiple distributions look like.
> 
> What percentage of trades are 5R+, 10R+ etc ?




You don't really have enough trades to make any conclusions yet.
From my trading I'm getting around 3%+ that are 5R+ that is over 1800 trades this year so far.

Cheers.


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## tech/a (19 October 2011)

R35 said:


> You don't really have enough trades to make any conclusions yet.
> From my trading I'm getting around 3%+ that are 5R+ that is over 1800 trades this year so far.
> 
> Cheers.




1800 not enough?????
9 trades a day is pretty frequent.
Wouldn't doubt few are 5+
Do you trade with a stop or open?
Many do if scalping---if that's what you do.


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## R35 (20 October 2011)

tech/a said:


> 1800 not enough?????
> 9 trades a day is pretty frequent.
> Wouldn't doubt few are 5+
> Do you trade with a stop or open?
> Many do if scalping---if that's what you do.




Hey Tech/a,

Anything under 30 trades is not significant statistically?
These are all day trades over 10 markets. 
Hold time is in hours as no overnight hold.

You could say I'm confident in my system expectancy as it's over 1.0 on a daily basis...


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## tech/a (20 October 2011)

R35 said:


> Hey Tech/a,
> 
> Anything under 30 trades is not significant statistically?
> These are all day trades over 10 markets.
> ...




Sorry Im missing something here.

I thought you said 1800 trades didnt give you anything to be confident of your R/R.


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## skc (20 October 2011)

tech/a said:


> Sorry Im missing something here.
> 
> I thought you said 1800 trades didnt give you anything to be confident of your R/R.




He said Pavilion doesn't have enough of a sample size.

R35's own sample size is 1800 and is sufficient.


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## tech/a (20 October 2011)

skc said:


> He said Pavilion doesn't have enough of a sample size.
> 
> R35's own sample size is 1800 and is sufficient.




Bloody he'll
I'm officially an old duck?


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