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Dallas
Experience: Intermediate
Platform: NinjaTrader
Trading: ES, NQ
Posts: 31 since Feb 2014
Thanks Given: 40
Thanks Received: 10
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Are there any traders who day trade successfully, with a strategy that emphasizes a simple, all-in, all-out trade management with a 2+:1 reward:risk ratio? All-in, all-out is much simpler to evaluate, as scaling out can get very complex and offer so many profit/loss scenarios to analyze. Most of us spend so much time fine-tuning entries, but would a simple, robust trend-following entry strategy applied to more active markets like YM, CL, and GC, yield consistently good results with less on-going analysis and possible tweaking over time?
There is typically an inverse relationship between the reward:risk profile and win rate, but achieving a 2+:1 reward:risk profile with a 50+% win rate without the need to identify the “ideal” entry, may make the trading session easier to manage.
I understand the lower the strategy win rate, the higher probability of consecutive losers, and the deeper the drawdowns can be, so you would have to have a strong “probability mindset” to maintain confidence and discipline in taking the trades. Regardless, all successful traders need that mindset.
I would welcome any advice from successful traders who have had success or failure with a predominantly trade-management focused strategy. The perspective may offer a mental shift for those who are laboring for those ideal entry setups. Thank you.
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