risk to reward the right balance?
risk to reward the right balance?
I am currently trying to figure out a good trading strategy and also learn pine script. I have been trying to develop a strategy using trend analysis with MA signals. Nothing majorly complicated. On paper it is going OK
I developed a systen with long and shorts and over 16 pairs had an average success rate of 56%
I think the code for shorts was off so removed it and when with longs
Got an average over the 16 pairs of 75% wins although there where major differences 90% with btc 30% with XRP
The issue I am having however is with stop loss and general risk reward.
Basically I have a tight tp level and a loose sl. This means with BTC going long despite a 90% win rate I have only got 10% profit going all in each trade (this is better than the 0.39% if I held during the same period)
While with ETH I have a win rate of 75% but a loss of 8% on account
I am trying to figure out how to get the balance right between r:r in a market that is volatile. I am looking at a moving stop loss and connecting it the ATR but having issues coding this properly.
What are peoples thought on the best r:r or how do you set these levels
We have different strategies so maybe it will not work for you, i always used the 1 is to 2 ratio to prevent massive losses.. But sometimes below the weak candle i consider it a safe placed as well to protect my capital from errors and the take profits it depends on my analysis . By the way i used to trade swing, break and sometimes scalping and for me that risk to reward setup is very useful. Less losses and big profits that’s what it’s.