Reply to thread

Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)

Should a break-even trade even be considered a valid score in a Risk/Reward System ?

If you scratch a trade at break even (Zero R ) what you do next is take another trade, so in effect, within your system you have taken funds out of a Zero R, and placed it in the next trade, a 1R trade.

Thats sort of equivalent to having not taken the first trade.

Some people may consider if the original stop placement was justified as signalling a fail of the trade and that the entry was a suitable entry, why now is the entry point the place to signal a failed trade.

Why therefore, is not a 0.25 R or 0.5 R a better proposition than entering a new trade at 1 R ?

If you are not trying to be right, rather trying to be profitable, surely any risk less than you take for the next trade, remains a valid trade within the Risk/Reward System ?

I struggle with this concept, life was easier when trades were singular, since trading became a series of loops, deploying funds like employees in a business, it's become less simplistic...am glad others here have it sorted