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RE: Risk/Reward



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uh....Chuck....care to qualify that statement.....
I think we all need a system with +50% winners and a +3:1 win/loss ratio.

> -----Original Message-----
> From: CRLeBeau@xxxxxxx [mailto:CRLeBeau@xxxxxxx]
> Sent: Friday, June 16, 2000 12:02 PM
> To: JAC1390@xxxxxxx; OMEGA-LIST@xxxxxxxxxx
> Cc: listmanager@xxxxxxxxxxxxxxx
> Subject: Re: Risk/Reward
>
>
> 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
>
>