Risk ratio

Aug 01, 2009 at 09:27
3,068流覽
23 Replies
Elkart
forex_trader_7
會員從Aug 01, 2009開始   895帖子
Aug 01, 2009 at 09:27
What does that one do? Not sure i understand it.
會員從Jul 31, 2009開始   1418帖子
Aug 01, 2009 at 09:41
It measures the risk:reward ratio, showing you the average reward you are getting on each trade in the selected currency. So if you have a risk ratio of 1.5 in EURUSD, it means that for every 1 unit of the trade you are initiating, you're expected to get back 1.5 units.

More over, you can see from this statistic which currencies are your more profitable than others and based on that you can decide in which currencies to increase your position sizing, and which to lower, which will eventually increase your profitability.
Elkart
forex_trader_7
會員從Aug 01, 2009開始   895帖子
Aug 01, 2009 at 10:10
K, but those values are all positive, where i do have losing pairs. Shouldn't they go negative?
會員從Jul 31, 2009開始   1418帖子
Aug 01, 2009 at 10:26
We currently do not show negative risk ratios as we didn't feel it was necessary.
Ratios from 0 and up should give you a good overview of the currencies profitability.

Do you feel negative values would contribute also to the analysis?
Elkart
forex_trader_7
會員從Aug 01, 2009開始   895帖子
Aug 01, 2009 at 10:41
I'd be able to see what pair is the most negative at a glance, provided I can look at monthly data for example. But right now it gives eurusd with a positive value, so it looks like a low yielding pair, instead of being shown as my biggest loser.

For me being able to zoom into pairs is critical. Big nice red bar would be nice yes.
會員從Jul 31, 2009開始   1418帖子
Aug 01, 2009 at 10:57
Ok, added to the to-do list!

Thanks for the feedback.
會員從Jul 31, 2009開始   27帖子
Aug 05, 2009 at 10:39
Ok, I see you added the negative values.
It does make a difference and thank you!
If it moves up and down, and I can sell and buy it, I'll trade it!
會員從Apr 18, 2017開始   659帖子
Dec 07, 2017 at 11:40
Elkart posted:
What does that one do? Not sure i understand it.


I see, you got your answer already! By the way, according to me a fixed risk reward ratio is much helpful than the volatile one! This is why, I am working with the fixed one.
會員從Aug 11, 2017開始   870帖子
Feb 11, 2018 at 07:06
In Fx trading Mostly beginners are scared about using high leverage in Forex. It is quite right that choosing high leverage will cause the reason high loss but also can give the big profit , its overall risky to use the high leverage , my opinion is that we should use the small leverage in order to get the fruitful result from this business.
會員從Jan 03, 2018開始   11帖子
Feb 12, 2018 at 13:29
But if you have tiny account you are never going to make any money with a small leverage
會員從Aug 11, 2017開始   870帖子
Feb 25, 2018 at 06:44
I have seen many newcomers consider high leverage at many risk , if there is any risks it is completely with non-sense planning and zero risk plan , nothing to do with high leverage at all. So, before trading with high leverage we have to acquire accurate risk managing plan.
會員從Feb 26, 2018開始   13帖子
Feb 26, 2018 at 13:28
It is true that there needs to be a risk plan but leverage should be part of that plan
會員從Dec 11, 2015開始   1462帖子
Feb 27, 2018 at 15:07
Gold101 posted:
It is true that there needs to be a risk plan but leverage should be part of that plan


What kind of leverage do you use?
會員從Aug 27, 2017開始   875帖子
Mar 01, 2018 at 09:13
Gold101 posted:
It is true that there needs to be a risk plan but leverage should be part of that plan


Definitely it is! Leverage is very much important parameter here! In my trading, I am comfortable with the low trading leverage; now I am using 1:100.
keeping patience.......
會員從Mar 01, 2018開始   12帖子
Mar 02, 2018 at 09:37
Even 1:100 could be pretty high. 1:25 is ok for me
會員從Aug 11, 2017開始   870帖子
Mar 08, 2018 at 11:01
When I was a newcomer I used 1:100 leverage in demo and 50:1 in live , it was really comfortable for avoiding losses and risk when trading.
會員從Mar 28, 2021開始   586帖子
Dec 09, 2021 at 07:24
mlawson71 posted:
Gold101 posted:
It is true that there needs to be a risk plan but leverage should be part of that plan


What kind of leverage do you use?

High leverage can cause you huge losses if you don't use proper risk managing technique. I have seen various traders to lose their account as a result of unprotected trading approach with high leverage. High leverage interfaces with us to make colossal trades yet it harms us in transform way when we lose our trade. I am utilizing 300:1 leverage.
會員從Dec 17, 2009開始   4帖子
Apr 17, 2024 at 12:28
Where do i see the Risk Reward Ratio on myfxbook? I cant find it on the published accounts
Never Give Up
會員從Aug 13, 2024開始   34帖子
Sep 26, 2024 at 10:47
For the risk ratio, it’s all about comparing how much you're willing to lose on a trade to how much you aim to gain. So if you’ve got a 1:2 risk ratio, you’re risking $1 to make $2. Personally, I usually keep it around 1:2 or 1:3. Sometimes, when I’m feeling extra confident, I might push it, but man, going beyond that can get real tricky, real fast. You ever try a crazy high risk ratio and then watched the market turn? Not fun!
會員從Feb 23, 2021開始   19帖子
Sep 27, 2024 at 05:34
It is a way to measure how much risk you're taking compared to the potential reward in a trade. It helps you decide if a trade is worth it.

For example, if you're willing to risk $100 to potentially make $300, your risk ratio is 1:3. This means for every $1 you risk, you're aiming to make $3.

A lower ratio, like 1:1, means you risk $100 to make $100, while a higher ratio, like 1:5, means you risk $100 to make $500. Generally, traders aim for a higher risk-reward ratio to make the risk worth it.
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