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Originally Posted by radicalmoses
I simply dont think that over a long run trying for a 15-20pips for this system for a S/L of 35pips is going to work becoz of the R/R ratio.
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This R/R thing is a myth, or at least it is poorly understood. The ratio between target and stop loss means nothing by itself. It doesn't show how profitable a system is. Take 2 systems, A and B. System A has a target of 100 pips and SL at 50, but it only wins 3 out of 10 times. System B has a target of 20 pips and SL at 100, but it wins 9 out of 10. Out of 10 trades, you would lose 50 pips using system A (with the "good" RR ratio) and win 80 using system B (with the "poor" RR ratio).
If Nina's entry is followed by a +10 pip move 6 times more often than a -30 pip move, then for every 7 trades you would make +60 - 30 = +30, a VERY good system in spite of the so called bad RR ratio. If, on the other hand, Nina's entry leads to -35 pips twice as often as it leads to +60, such a system would lose 10 pips for every 3 trades (on average of course), and it would be bad even though the RR ratio sounds good. This is just a theoretical example, I am not saying that it is the actual way Nina's system behaves.
The only way to determine the best settings is to test various pairs of RR on historical data, at least 50 trades. Then I suggest going to the simulator at
http://hquotes.com/tradehard/simulator.html - please read the explanations there, enter the values for Win/Loss and Win Prob - and see what your expectations should be using the system.