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What Reward to Risk do you need to be profitable?


Unless you know that a predeterined Exit % level will return you a profit over a period of time(Same as any exit method) you cant answer this question.


If however you had a 2% stop loss on initial capital (There is a difference).

You Won 50% of the time.

Your maximum consecutive losses didnt exceed 25.

Then 1.2:1 may work.Or 2.4% of initial capital profit.

Change the stop and or % winners and or Transaction costs,everything alters.

So if you choose a level and you dont perform EXACTLY as the parameters you set youll go down in a heap.


Really if your short term trading you MUST have a stop and it MUST be very close and you have to expect youll get taken out quickly.Its part of the Short term method Im afraid.


Better email me for the worksheet!


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