FOREX – GBPUSD 60min (Part 2)

Now compare the example below to this one on the same GBPUSD 60min Chart for the automatic DP buy just a few days earlier, where we had an initial R/R of 2:5, i.e. just above our 2:1 minimum. Yes, we all know that this does not “guarantee” that the profits will always be larger, because nobody knows the future. But at least it gives you a good starting point.

Thanks

Steve

FOREX – GBPUSD 60min (Part 1)

Hi Everybody,

Today I thought I would start with a training exercise on Risk/Reward, and making sure that you check the initial Risk/Reward at the first profit target.

If you look at the 60-min Chart of the GBPUSD you can see how we looked to have got a nice Wave 5 high that unfolded at both the minimum Wave 5 WPT and DP resistance. We also had nice oscillator divergence at the high at well. So it a first glance it did look like it was a good setup. But how good was it in term of Risk/Reward.

If you remember, we like to have trades that (on average) produce profits that are much larger than the losses. One was we do that is to try and only consider trades that start off with a possible 2:1 Risk Reward (or greater) at the first target. In this example the R/R at the first target was only 1.9:1. Some may say that is close enough, but at least with MTPredictor you have the tools to quickly and easily check this to then make an informed decision.

Thanks

Steve