MQL5 TUTORIAL - HOW TO DEFINE A REALISTIC RISK REWARD RATIO
https://mql5tutorial.com/?s=RobotTrad...
This video is about something that Angela Merkel emphasized during her chancellorship: Moderation and balance. This means we want to talk about how much risk and how much profit is realistic. At the beginning of 2024, we started an experiment that is still running and is now up €1,415. It's a demo system, but it delivers realistic results. How do we know that? Quite simply because we have several systems and can compare them with each other. If we look at the current status over the last three months, we could perhaps say that this is not a particularly good system. After all, who would want to spend €100,000 in capital to make €1400 profit in three months? But there are a few points to consider. Firstly, the system shown has made continuous profits over the last three months. Secondly, the system never got into a situation during this time where the net assets (the equity) would have collapsed so much that it would not have worked with a capitalization of € 1000 or € 2000. That would be a completely different result, because then we wouldn't be talking about 1.4% in 3 months, but 14% or more. Thirdly, we have set up the system so that it works without interaction and we don't have to worry if we don't look at the results for a week. On the contrary, there was a system failure that lasted almost two weeks and we didn't even notice it. The only reason we noticed it was because we noticed during a check that the network connection had been disconnected from one of our servers and it only worked again after the server had been restarted. In any case, we said beforehand what we were going to do and then did what we said. We've now had a quarter of a year of real experience on a demo account, and that's why we're now entering the second phase. So we will open a much smaller account, but with real money. We always recommend that all Premium Course members start with a so-called cent account, as this makes automatic trading much more scalable. This allows you to react much better to market changes with significantly less capital. Another thing, and I think this is number four in this list, that I would like to point out is the fact that only 78.5 % of the trades carried out so far have been successful. What does that mean? Quite simply, our system can't see into the future and it doesn't always have to be successful.
It is based on probabilities that have led to the overall result being positive despite only 78.5% of successful trades. Let's move on to the fifth thing in this list, and that is the fact that every trader has their own idea of how much risk and profit is appropriate, how much capital they want to trade and whether they prefer to trade entries in the direction of the trend or breakouts. This means that, just like choosing the perfect car, the perfect personal trading system or the perfect settings of that system is a fairly individual story. If someone wants to trade the same system with higher risk settings, then that is easily possible. This system here is the solution that is currently offered on the RobotTradingSystem.com website, and it offers the possibility to adjust the risk and also some other things so that you have a solution that is customized according to your own ideas of risk and profit. We are not claiming that our system is the best, but it is the best way to customize a system so that you can set your own profit and risk and still sleep at night without having to worry about whether your trading system and trading account may have already been dismantled. Thank you for watching. If you would like to trade your own trading system like this one, have a look at the RobotTradingSystem.Com website. Otherwise, thank you for watching and we'll see you in the next video.