TRO RISK / REWARD
Posted: Wed Apr 01, 2009 12:22 am
TRO RISK / REWARD
Do you know how many times I hear "What's the stop loss?"
Let me make something PERFECTLY CLEAR:
STOP LOSS IS NOT A FUNCTION OF YOUR ENTRY METHOD.
STOP LOSS IS A FUNCTION OF YOUR MONEY MANAGEMENT AND RISK MANAGEMENT.
The market doesn't care why you entered a trade or why you exited.
Your stop loss needs to be calculated so that after 10, 100 or 1,000 trades, you expect to come out even or ahead of the game. It is that simple.
TRO_RiskReward will calculate and display what your winning percentage need to be to break even using your SL and TP including spread. ( Commissions not coded so leave input Use.Commissions = false )
Ideally, % Wins Needed should be less than 50 but it doesn't have to be.
FREE MT4 version of TRO_RiskReward, INCLUDING SOURCE CODE, attached.
Do you know how many times I hear "What's the stop loss?"
Let me make something PERFECTLY CLEAR:
STOP LOSS IS NOT A FUNCTION OF YOUR ENTRY METHOD.
STOP LOSS IS A FUNCTION OF YOUR MONEY MANAGEMENT AND RISK MANAGEMENT.
The market doesn't care why you entered a trade or why you exited.
Your stop loss needs to be calculated so that after 10, 100 or 1,000 trades, you expect to come out even or ahead of the game. It is that simple.
TRO_RiskReward will calculate and display what your winning percentage need to be to break even using your SL and TP including spread. ( Commissions not coded so leave input Use.Commissions = false )
Ideally, % Wins Needed should be less than 50 but it doesn't have to be.
FREE MT4 version of TRO_RiskReward, INCLUDING SOURCE CODE, attached.