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Risk/reward and profit factor question
Sep 01, 2013 at 06:26
1,398 Views
2 Replies
forex_trader_139529
Member Since Jul 16, 2013
7 posts
Sep 01, 2013 at 06:26
(edited Aug 31, 2013 at 17:23)
Hi all, my info o na demo account I've had ruining just for a few weeks so I don't put any faith in my performance or lack of. About 11 months too short of history for that.
Nevertheless something has me puzzled. Now I am a eager but un-gifted student in the maths department..LOL But as you can see via my info below
http://www.myfxbook.com/members/blackdogFX2/icm-1-4hr-demomt4/671730
also see
https://skydrive.live.com/redir?resid=999B55957F8D774F!935&authkey=!AP90PdxO8D8TxyM&v=3
The profit factor says 1.39 but on the same account that I'm monitoring with MT4i it says my risk/reward is +3.27. I had assumed they would be the same as I though, mistakenly it seems now that Risk/reward and profit factor question are different names for the same things. Can someone explain the difference please? If so I'd be thankful for your help.
How can I get myfxbook to show me my risk/reward per trade.....thanks
Nevertheless something has me puzzled. Now I am a eager but un-gifted student in the maths department..LOL But as you can see via my info below
http://www.myfxbook.com/members/blackdogFX2/icm-1-4hr-demomt4/671730
also see
https://skydrive.live.com/redir?resid=999B55957F8D774F!935&authkey=!AP90PdxO8D8TxyM&v=3
The profit factor says 1.39 but on the same account that I'm monitoring with MT4i it says my risk/reward is +3.27. I had assumed they would be the same as I though, mistakenly it seems now that Risk/reward and profit factor question are different names for the same things. Can someone explain the difference please? If so I'd be thankful for your help.
How can I get myfxbook to show me my risk/reward per trade.....thanks
Member Since Jul 31, 2009
1418 posts
Sep 01, 2013 at 09:54
@blackdogFX2 The profit factor is the ratio in percentage between the sum of all the win trades (Gross profit) and the sum of all the loss trades (Gross loss).
I do not have any information about the metrics in other websites.
I do not have any information about the metrics in other websites.
Member Since Nov 21, 2011
1601 posts
Sep 02, 2013 at 12:04
Profit Factor and Risk/Reward are linked but totally different information.
I don't think Myfxbook calulates your average R/R. Not easy as SL and TP can be uptaded while a trade is running.
Let's say you are rigourous and you stick to your MM and so your R/R is always 1/5.
=> If Your Profit Factor is > 1 then it means that you have at least one winning trade over 5.
So your are profitable.
(R/R 1/5 would be for example Long EURUSD @ 1.3200 SL 1.3180 TP 1.3300)
I don't think Myfxbook calulates your average R/R. Not easy as SL and TP can be uptaded while a trade is running.
Let's say you are rigourous and you stick to your MM and so your R/R is always 1/5.
=> If Your Profit Factor is > 1 then it means that you have at least one winning trade over 5.
So your are profitable.
(R/R 1/5 would be for example Long EURUSD @ 1.3200 SL 1.3180 TP 1.3300)
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