What I wrote in 3 minutes can save you 2 years in the market

Rate Optimization Strategy

Use this to;

- Improve risk:reward ratio

-Reduce the size of losing trades

In Trading, Your Risk:Reward is the Key to Long-Term Success

Because winning big and losing small will maximize profits.

Ratio optimization helps you achieve this.

Start here:

1. Data collection

Collect data on how invalidated an average winning trade is.

For example:

"An average winning trade only goes into my stop loss zone 60% of the time and the other 40% stays the same."

This helps you find out;

- How much of your stop loss area is being "wasted"
-How far can you stop?

You need this to quickly eliminate losers and increase the number of winners.

2. Surface area

Objective: Narrow the invalidation zone of the stop loss to improve Risk:Reward

-Start with a small adjustment (eg -0.1R)
- Make 30-100 more transactions
-Then tighten again and repeat.



Note: Make sure each adjustment is always based on the data you collect.

This will automatically increase the size of your winning trades.

Because your stop loss zone will be narrowed.

It will look like this:

3. Repetition

Repeat this process until you can no longer reduce your stop loss.

This will significantly improve your Risk:Reward ratio over time.

You can also cut losing trades faster by applying tighter stop losses.

To go one step further,

Reverse this strategy to increase your winnings.

By increasing your trading rewards even more

You will never miss out on profits again.

To go one step further,

Reverse this strategy to increase your winnings.

By increasing your trading rewards even more

You will never miss out on profits again.

If you like Ratio Optimisation, you'll love my Tracking Optimisation PDF

This will help you create an exit strategy for a trending market.

That's all for today, guys.

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