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In a message dated 6/15/00 6:32:03 PM Pacific Daylight Time, JAC1390@xxxxxxx
writes:
<<
When reading about many system writers they refer to risk/reward ratios of 3
to 1
how are these determined? Do they use probability formulae or visual
perception? >>
It is usually the result of historical testing and comparing the size of the
average winner to the size of the average loser. If you have more than 50%
winning trades you don't need to have such a high ratio.
Chuck LeBeau
traderclub.com
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