You’ve GOT to Target Multiple-R Winners

 

Most trades will typically fall in the range from -1R to +1R… hopefully more on the positive side of that range.

But for most of us this does not mean you should be targeting 1:1 trades all day, every day.

By all means take them if you assess them as being a higher probability play. But you'll need to maintain a 70% or more win-rate if you want to achieve any decent long-term profits with ONLY 1:1 trades.

That's a tough ask!

It's far better, in my opinion, to aim to break up that stream of -1R to +1R trades with the occasional large multiple-R profit.

When market structure and price action suggest the potential for a multiple-R trade, target those higher returns.

 

You've got to target multiple-R winners

You've got to target multiple-R winners

You've got to target multiple-R winners

 

So the obvious question is, "When should we be more patient with a trade and hold it for a larger runner?"

There is a recent amendment to my pre-session routine which can help answer this question.

It involves a quick review of the 30 min chart (I call this the VHTF chart… for Very High Time Frame).

Using the VHTF I map out the structure, with the intent of noting the price regions which offer the potential for stronger, more directional, price movement.

So let's look at the VHTF chart for the earlier runner and see how it helped me with the decision to hold a portion of the trade for multiple-R returns.

 

You've got to target multiple-R winners

You've got to target multiple-R winners

 

My expectations are simple. I aim for the small wins and small losses to simply balance out to provide a neutral result overall. Anything positive is a bonus. And I rely on one or two larger wins to provide the bulk of the profits in any 20 trade sample. More is better. But this is enough.

Take your 1:1 trades if they're assessed as a good probability trade. But don't limit yourself to 1:1 targets if the market structure and price action suggest the potential for more.

Happy trading,

Lance Beggs

 


 

Written by

YourTradingCoach - Admin

2 Comments to “You’ve GOT to Target Multiple-R Winners”

  1. Vikas says:

    Good Thinking Lance about Friday. Some shorts may be trapped.
    What do you mean by 1:1 Trade. and what Pink and Blue arrows indicate
    What do you mean by “Prove you’re person

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