AirelonTrading (November 30, 1999 at 12:00 am)

Thanks. :)

alhaitham1 (November 30, 1999 at 12:00 am)

great video

sergeibell (November 30, 1999 at 12:00 am)

glad to know my comment inspired you to do a new video..

AirelonTrading (November 30, 1999 at 12:00 am)

And thanks. Yeah, I always try to include something to make the video "interesting", rather than just straight facts being imparted.

AirelonTrading (November 30, 1999 at 12:00 am)

Absolutely true. The R:R ratio is just a portion. And I always stress the a 1 risk to 2 reward ratio to new traders, as that can't hurt their chances. As you know - when you're new to the business- it's well- overwhelming. I figure pad their chances. But you're absolutely correct. There is nothing wrong with a 1:1, as long as your edge is right, and you're just scalping. I've been known to have trades with a 1:1 as well.Actually, gives me an idea to do a video on the imp of an 'edge'

sergeibell (November 30, 1999 at 12:00 am)

Thnx..Im going to watch all your videos. Its just that people often focus a lot only on the risk reward ratio, but don't say anything about the probability of win vs the probability of loss. In fact im going to use a 1:1 risk to reward but with a 70% probability of win at least, maybe a little more. Scalping obviously. I'll leave you some comments in your videos haha they seem very intersting.

AirelonTrading (November 30, 1999 at 12:00 am)

This risk / reward ratio is actually just one of the five or six principles I use. I'd say it's 1/5 of the total formula. :^)

AirelonTrading (November 30, 1999 at 12:00 am)

That is somewhat, the formula I use. Although as I talk about in the Strategies video, there are actually a number of ways to put that formula into practice.But I have found that by focusing on the five principles of Money Management in this series of videos: (Risk Analysis, Reward Analysis, Drawdown, Accuracy, Trade Management), and summing them up in Performance Analysis? That nothing can slip under the radar and hurt my trading.

sergeibell (November 30, 1999 at 12:00 am)

Hey nice video.. but what about these formula.Average Probability per Trade (APPT) = (Probability of Win x Avergage Win) - (Probability of Loss x Average Loss)

spoonlines (November 30, 1999 at 12:00 am)

Thanks, nice video.