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Risking 2 for 1.. probability & the bottom line.

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Evans GA/USA
 
Trading Experience: Intermediate
Platform: NinjaTrader
Broker/Data: NinjaTrader Brokerage - Philip Capital
Favorite Futures: NQ,ES,6E,CL
 
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Posts: 534 since Jul 2018
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Don't forget to factor in commissions.

Using ES as an example:

1 tick profit = 12.50 USD - 3.66 in commissions(that's what I pay you may be different) = 8.84 profit net
2 tick loss = 25.00 USD - 3.66 in commissions = 28.66 in losses.

To make up for that you would need 4 consecutive winning trades. That goes for every loss you take.

Not a good way to trade long term in my opinion. Lose two or more in a row and making up that ground gets tougher and tougher. Both in a practical way and in a psychological.


Last edited by TradingOgre; August 5th, 2018 at 02:56 PM. Reason: Typo
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