Thread: 0 to 10000%: Big RR

Originally Posted by ;

quote ... one trader can earn 100$ by trading 1std lot(10$ per pip) and another trader can earn 100$ by trading 0.1std lot(1$ per pip)... So, who amongst them will survive longer?

You can not reply this question just according to what you wrote. You're missing an important element : the account size.

In your example, the 0.1std lot trader could be more vulnerable than the 1std lot trader.

Let us rewrite your case;

1/ Trader 1 is trading 1std lot (10$/pip) using a 100,000$ equilibrium

2/ Trader 2 is currently trading 0.1std lot (1$/pip) using a 1,000$ equilibrium

So, who amongst them will survive longer? The solution is different than what you were pointing out ... Right ?

Originally Posted by ;

quote You can not reply this question just based on what you wrote. You are missing an important element : the account dimensions. In your example, the 0.1std lot trader may be more vulnerable than the 1std lot trader. Let's rewrite your illuion; 1/ Trader 1 is trading 1std lot (10$/pip) using a 100,000$ balance 2/ Trader 2 is trading 0.1std lot (1/pip) using a 1,000$ balance Thus, who amongst them will last longer? The solution is different than what you were pointing out ... Right ?

Nope, you missed the point... Sorry, my fault... didn't describe it well... So. . .lets pretend that both traders have balance and risk appetite.
Trader 1:Have 100$k balance, traded 1std lot and profit 100$.
Trader 2:Have 100$k balance, traded 0.1std lot and profit 100$right?no, with same risk appetite Trader2 will make 10x greater than Trader1 since he gained 10x more pips.Which, in turn, makes Trader2 be able to gain same cash as Trader1, but together with 10x lower balance and reduced SL values.

Originally Posted by ;

quote....Trader 2 is trading 0.1std lot (1$/pip) using a 1,000$ balance...

Who on earth would trade that lot dimensions using 1k account balance?

Originally Posted by ;

quoteSo.. .lets pretend that both traders have same equilibrium

That was the missing stage indeed. That is why I said according to what you wrote.

Your point is now creating more sense!

Originally Posted by ;

quote thank you image

There's yet another candidate.

Originally Posted by ;

quote Nope, you missed the point... Sorry, my fault... did not describe it well... So. . .lets feign that both traders possess same equilibrium and risk appetite. Trader 1:Have 100$k balance, traded 1std lot and profit 100$. Trader 2:Have 100$0.1 equilibrium, traded 0.1std lot and profit 100$right?no, with same risk appetite Trader2 will make 10x greater than Trader1 because he gained 10x longer pips.Which, consequently, leaves Trader2 be able to acquire same cash as Trader1, but with 10x lower equilibrium and lower SL values. quote Who in the world would trade that lot dimensions...

but if you have same risk and also same equilibrium, then you cant answer this question. Its neccessary to understand the equity exactly to determine if both have same opportunity or not.
Should you trade 1 lot or 0,1 lot and make 100 usd by same risk appetite, then you have also same reduction risk with both trades, therefore just 1/10 reduction risk with 1 lot against the 0,1 lot commerce.
So for your example the result is: both may continue same time, until the account size isn't too modest, the full employed leverage of the lot trade can kill the account over the weekend gap, in large news with extrem spread and slippage,....
If account size is large enough both styles are identical. Depends extrem from trading style and egy.

EDit: it is crhistmas damn it. . Stop thinking about trading lol

Originally Posted by ;

quote I second that... look at lots traded... I mean one trader can make 100$ by investing 1std lot(10$ per pip) and another trader can make 100$ 100 trading 0.1std lot(1billion each pip)... Thus, who one of them will last more? Common mistake by majority of today's traders-they can not choose the ideal size for your transaction, they consider how much they would like to profit rather than just how much they can AFFORD TO LOSE. quote Because he need to invest many time and effort into read and learn and transaction. . .but there's shortcut that a lot of people use here and it's...

You are spot on with this remark.

There're lots of noobs with this forum that do not understand basic money management that's directly associated with risk vulnerability. (That is not risk management associated with trades.)

By their obvious lack of comprehension, we know they have this gap in knowledge that they're unable to critically assess if a trader may be good in the sport or not so making their opinion useless.

By this exact same standard yardstick we can also know that poster might be good at this Currency Market game or not. All this can be found from the particulars of the trades they make or their understanding of the various aspects of this business.

In summary, see a trader post live trades is most accurate to know whether he's truly great in this business.

Originally Posted by ;

quote but if you've got same risk and same equilibrium, then you cant answer this query. Its neccessary to understand the equity just to determine when both have same chance or not. If you trade 1 lot or 0,1 lot and make 100 usd by same risk appetite, then you have also same reduction risk with both trades, so just 1/10 reduction risk with 1 lot contrary to the 0,1 lot trade. So for the example the outcome is: the two will continue same period, before the account size is not too modest, that the complete used leverage of the lot transaction can kill the account over the weekend gap, in large...

Nope, Trader2 will continue much longer since he knows well how much he can afford to lose if trade goes wrong and goals for large R :R whilst Trader1 is targeting for 10-20 pips profit and don't even care where to put SL(look at OP's TE)... However, possibly OP is superpro trader and don't need to take care about SL since he is always perfect.
Also Trader2 will make 10x more profits then Trader1... So it is no wonder that he last longer . Moreover,Trader2 may have lower hit rate and perform better than Trader1... In other words, Trader1 may be improved in trading but still perform worse than Trader2.Paradox.

Originally Posted by ;

quote Nope, Trader2 will last much longer since he understands well how far he can afford to lose if commerce goes wrong and goals for big R while Trader1 is targeting to get 10-20 pips profit and do not care where to put SL(look at OP's TE)... But, possibly OP is superpro trader and do not need to care about SL since he's always right. Additionally Trader2 will create 10x more profits then Trader1... So it is no wonder that he last more . Moreover,Trader2 can have lower hit rate and still perform better than Trader1... In other words, Trader1 can be...

I forecast an infinite discussion concerning rr lol

C transactions long term hence the relatively small lotsize. But I believe he'd be forced to utilize higher leverage to capture little market moves, whatever the rr.


Edit: k my last post... see you next year!

If u have nothing good to say abt someone , just sharrrap and watch, ur grand father once said , nothing could fly in the air like the plane does it now, but un the grand kid is enjoying the flight now . Learn to become positive.