Why a “Bad" Risk to Reward is Better

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  • Опубликовано: 7 ноя 2024

Комментарии • 91

  • @SirDavid0
    @SirDavid0 4 месяца назад +3

    Going to backtest from the start of the year again with negative RR. Keep up the work I’m glad you were recommended. You’re a real one in this scene.

    • @overnightforex
      @overnightforex  4 месяца назад

      Appreciate you bro. Comment back and let me know how it goes!

    • @lellel3767
      @lellel3767 Месяц назад

      How did the strat do

    • @lifemate5511
      @lifemate5511 24 дня назад +1

      They never come back lol

  • @dee23gaming
    @dee23gaming 4 месяца назад +12

    Negative R:R for the win! Trading is a math game, and we cracked it 👍

    • @overnightforex
      @overnightforex  4 месяца назад +1

      @@dee23gaming yessir 📈

    • @lellel3767
      @lellel3767 18 дней назад

      How come? I mean how can ANY rr (negative or positive) on its own be good or bad? Without an edge in the market in the long run you would break even no matter the rr (without commissions and spreads)

    • @PizzaParis
      @PizzaParis 7 дней назад

      @@lellel3767 Because the important things are both RR and Win Ratio. Talking about RR is not the only thing to consider.

  • @chronicle1999
    @chronicle1999 4 месяца назад +6

    This is the hidden key to cracking the market summed up 🤝🏻

  • @OfoeNelson
    @OfoeNelson Месяц назад

    Also another key is to stick to one pair for that consistency. When flipping a coin to determine an outcome you don't flip 5 coins of different weights and denominations at the same time, you flip one coin.

    • @overnightforex
      @overnightforex  Месяц назад +1

      @@OfoeNelson I swing trade so I cant trade just one pair. But if that worked for you man that’s great

    • @OfoeNelson
      @OfoeNelson Месяц назад

      @@overnightforex I'm not a math major so I might be wrong in the long term. I thought about probability and it's duality and this is how I got to my conclusion. In relation to a coin toss 1:1 can represent a coin that's weighted evenly on both sides. With 1:2 the weight doubles on one side of the coin and so on... So the win rate fluctuates with the increase of weight on this imaginary coin. But I'm sure much much smarter people than me have thought about this and there's some flaw in my logic I don't know.

  • @mikeberb
    @mikeberb 2 месяца назад +2

    I’ve been thinking about applying this idea . It sounds unorthodox but the conventional R:R advice hasn’t been working for real. Too many times am I knocked out of a trade just to watch it finally go in my direction. I think you summed it up perfect when you said we are/were essentially placing our SL in a place that’s easy to hit and a TP that’s harder to hit . Most of the times that SL isn’t even in a place that invalidates our original trade idea, it’s just an arbitrary price level based on the regular R:R method. Good video bro

    • @overnightforex
      @overnightforex  2 месяца назад

      @@mikeberb appreciate the support bro. Let me know how it works out for you

  • @Bxasd
    @Bxasd 13 дней назад +1

    Bruh I swear to god I immediately became profitable after using a negative risk to reward ratio of 1:0.5 . I was struggling for 5 years until I realized that we can't really predict where price moves and instead we can take advantage of small movements. We have been convinced to use "good" risk to reward ratios because the brokers just want us to lose! This is a secret that nobody talks about.

    • @overnightforex
      @overnightforex  13 дней назад +1

      @@Bxasd that’s exactly right. I’m glad it’s working out for you man 📈

  • @Matetodaslasmananas
    @Matetodaslasmananas 2 месяца назад +2

    27 trades is not a big sample to make assumptions. Of course with a negative RR your winrate will be a lot higher. In fact, for 0.2 RR, for breakeven you need 83% winrate

  • @szlpharmacology1330
    @szlpharmacology1330 3 месяца назад

    that intro is dope

    • @overnightforex
      @overnightforex  3 месяца назад

      @@szlpharmacology1330 appreciate you bro 🫡

  • @hesit7591
    @hesit7591 4 месяца назад +1

    How is your prop firm challenge going using this negative RR?

    • @overnightforex
      @overnightforex  4 месяца назад +3

      So far so good. First trade I took was a loss so that set me back. But then I’ve had about 7 wins straight

    • @kiwi3427
      @kiwi3427 2 месяца назад

      i use negative rr, or well i really just dont use rr. i risk what i know to risk, and cut profits at a reasonable level. you cant reasonably predict the market to keep moving up, so for me, i pull out from analysing the data. for example, trend is bullish with high volume, then i see a bit of pull back followed by slow volume so i cut. it may go up and sometimes im right and it reverses, but it doesnt matter. thats proper risk management.

  • @samuelgutierrez5565
    @samuelgutierrez5565 3 месяца назад +1

    This video is not famous but is good

  • @GanzyChannel
    @GanzyChannel 3 месяца назад

    Negative rrr accounts for volatility in correlation to the TP distance. Postive rrr does not

  • @abahmarsya
    @abahmarsya 4 месяца назад +1

    What's your favourite pair, mate?

    • @overnightforex
      @overnightforex  4 месяца назад

      I trade any forex pair honestly. Sticking to just one is kinda boring for me

    • @adedapogabriel3041
      @adedapogabriel3041 4 месяца назад +1

      A bad rsk to reward cannot just make you money but.more money😅

    • @overnightforex
      @overnightforex  4 месяца назад

      @@adedapogabriel3041 yessir

    • @adedapogabriel3041
      @adedapogabriel3041 4 месяца назад

      ​@@overnightforex❤

  • @PizzaParis
    @PizzaParis 7 дней назад

    Totally true, my strategy on BTC has a negative RR ratio and a high winrate, and I am now profitable...

  • @drnoh
    @drnoh 4 месяца назад +8

    i just passed phase 1 i was in -8% drawdown for 1month and half with high rr system and then i changed with negative rr system i passed challenge in 2 weeks its so crazy

    • @overnightforex
      @overnightforex  4 месяца назад +1

      @@drnoh wow that’s incredible. What was your RR you were using before and then what was the RR you used to pass?

    • @drnoh
      @drnoh 3 месяца назад +2

      ​@@overnightforex i used 2rr system and then switch to 1:0.2 and then switched to 1:0.5 this is my sweet spot i think

    • @overnightforex
      @overnightforex  3 месяца назад +1

      @@drnoh nice man love to hear it 📈

    • @Mustafa-vj4ut
      @Mustafa-vj4ut 10 дней назад

      Same. I was -5% drawdown in tff and passed the 2 phase challenge in one month then the day I passed tff shut down 💀

  • @haruki8782
    @haruki8782 3 месяца назад +2

    My man i ve been recently lowering my rrr from a high R style of trading, but my brain still cant understand how a negative rrr can make u profittable

    • @overnightforex
      @overnightforex  3 месяца назад +4

      @@haruki8782 the negative RR has more consistency with the win rate. High RR win rate fluctuates a lot more
      Would Small consistent wins or inconsistent big wins get you further in the long run?

    • @dee23gaming
      @dee23gaming 3 месяца назад +1

      I feel the same, but the moment I switch back to a positive ratio, I start losing money again 😂
      When I use a negative ratio, my equity curve goes straight back in the right direction.

    • @overnightforex
      @overnightforex  3 месяца назад +1

      @@dee23gaming the only way to go 📈📈

    • @rg950
      @rg950 3 месяца назад +8

      An insurance company risks 500,000 dollars to take 2,000 dollars from you.
      negative RR works in real life, it works in trading too.

    • @overnightforex
      @overnightforex  3 месяца назад +2

      @@rg950 that makes sense when you put It that way bruh

  • @7ate992
    @7ate992 4 месяца назад +1

    You ever try it with stocks?

    • @overnightforex
      @overnightforex  4 месяца назад

      No sorry I’ve never traded anything but forex

  • @Aylingfx
    @Aylingfx 4 месяца назад +1

    Have you had any trades where price just sits in drawdown for a few days? Do you have a scale out plan? Because say for example price is sitting doing side ways action in drawdown for a few days or a week whatever eventually your 0.2 win won’t cover the cost of commission

    • @overnightforex
      @overnightforex  4 месяца назад +2

      So far I haven’t had that happen. The TP is so small that it usually gets hit within a couple hours
      But if it did sit in drawdown for days then yes. Commission would be too much

    • @Aylingfx
      @Aylingfx 4 месяца назад +2

      @overnightforex yes I have been back testing and forward testing 0.25 and I’m seeing tp get smashed fast and often. Feel very good about it 👍🏽

    • @overnightforex
      @overnightforex  4 месяца назад

      @@Aylingfx so far what has been your win rate thru Backtesting?

    • @Aylingfx
      @Aylingfx 4 месяца назад

      @@overnightforex so far I have 90% win rate. As time goes on I think I can improve this too

    • @Aylingfx
      @Aylingfx 4 месяца назад

      @@overnightforex about 90% I haven’t done that much. I’m confident it’ll improve As I collect more data

  • @tony-w1g5s
    @tony-w1g5s 4 месяца назад +2

    thank you for your work and the truth

    • @overnightforex
      @overnightforex  4 месяца назад

      Yessir🫡

    • @overnightforex
      @overnightforex  4 месяца назад

      Do you also trade with negative RR? If so has your experience with them been better than higher RR

    • @tony-w1g5s
      @tony-w1g5s 4 месяца назад +1

      @@overnightforex Yes i do negative RR , i really love win a lot of time , my mind is really happy with that big winrate and still making money so why not lol

    • @overnightforex
      @overnightforex  4 месяца назад

      @@tony-w1g5s can I ask what your RR and win rate is?

    • @t.1000.
      @t.1000. 4 месяца назад

      ​@@overnightforex I do, on NQ -1.5:1R

  • @Aylingfx
    @Aylingfx 4 месяца назад

    It won’t let me reply to my comment lol. But I am getting a 91% win rate.
    Do you use the same size stop on all of your trades? Or do you change it

    • @overnightforex
      @overnightforex  4 месяца назад

      I place my stops at the previous high or low so it changes a lot based on price action

    • @overnightforex
      @overnightforex  4 месяца назад

      91% win rate is amazing dude

    • @Aylingfx
      @Aylingfx 4 месяца назад

      @@overnightforexmakes sense mate! Is there a way we can chat more? I’d like to get to know you better 👍🏽

    • @overnightforex
      @overnightforex  4 месяца назад +2

      @@Aylingfx you can contact me on Instagran bruv. Instagram is baileymeetsworld__

    • @Aylingfx
      @Aylingfx 4 месяца назад

      @@overnightforex nice one mate. I’m in the process of back testing the 4H and the 10m just to see which is more profitable.

  • @LaraaFoo
    @LaraaFoo 3 месяца назад

    Do you think the reason beginner traders are so profitable in the beginning is because of negative rr? they get in the green for a few points and boom close. if only they wouldnt over leverage after getting that confidence they would be profitable .

    • @overnightforex
      @overnightforex  3 месяца назад

      @@LaraaFoo I see what you’re saying but I’ve never seen a beginner trader only use negative RR for a long period of time.
      If they did and didn’t over leverage I think they’d have a much better chance at succeeding

  • @neladarvish
    @neladarvish Месяц назад +1

    got vids with receipts ? If you do will believe you

    • @overnightforex
      @overnightforex  Месяц назад

      @@neladarvish go look at my telegram. There’s your receipts

    • @neladarvish
      @neladarvish Месяц назад +1

      Those are screenshot anyone can do. You have no receipts to verify yourself, therefore your a another bluff with signals. Real receipts is how much you making per trade with the screen shot of that + verified broker and live account.

    • @overnightforex
      @overnightforex  Месяц назад

      @@neladarvish Its impossible to fake live callouts for years on a telegram chat
      You have no idea what you’re talking about. Go take my trades and make some money so you stop hating in my comments

    • @neladarvish
      @neladarvish Месяц назад

      @@overnightforex call outs with no profits? 😂😂 You a joke , anyone can make call outs with a negative risk to reward ya chump

    • @neladarvish
      @neladarvish Месяц назад

      @@overnightforex your a demo trader who puts signals up with negative risk to reward targets which is dirt easy. Kids in school could do that 😂

  • @rakhael6428
    @rakhael6428 4 месяца назад +1

    hi sir can u make groupchat trader who use negative rr?

    • @overnightforex
      @overnightforex  4 месяца назад +1

      I have already I call my trades out here. t.me/ofxsignalss

  • @richbalkissoon5322
    @richbalkissoon5322 4 месяца назад +1

    How can this be proven when non of the greatest market wizards every succeeded with this type of risk reward process

    • @overnightforex
      @overnightforex  4 месяца назад +1

      I’m sure there’s traders out there who have had success trading like this. Don Vo is a very popular trader who takes negative RR trades live everyday

    • @rakhael6428
      @rakhael6428 4 месяца назад

      search DON VO on youtube hit 1 mil with negative rr, i know some of propfirm trader that use negative rr and they r fckin consistent more than ur fake gurus who got money from selling courses

    • @rakhael6428
      @rakhael6428 4 месяца назад +4

      search Don vo his hit 1 mil with negative rr

    • @everydayiscatsday
      @everydayiscatsday 3 месяца назад

      search Al brooks "actual risk"