Betfair trading risk- reward ratio

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Human123
Posts: 90
Joined: Mon Dec 14, 2009 1:44 pm

The answer to this question will probably start with "depends" but worth a go anyway...

What sort of risk- reward ratio is ideal to look for when making a trade?

I seem to operate at 1:1, so that means for every trade i lose it only takes one winning trade to make back that loss but im more a swing trader then scalper.

Obviously it depends on your strike rate

But i was reading that financial traders look for a ratio of 1:2. so they lose one unit on a loser, but win 2 on every winner, so a strike rate of about 35% would turn a profit.

what sort of ratio do traders on here look for?
Rubik

All depends on your trading style. If you are scalper going for 1 tick gain you will need a very high strike rate. If you are a swing trader you can have a low strike rate but still make money as your winning trades are quite likely to be much bigger than your losing ones.
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