Today we got off to a difficult start but once we pulled out of being down 10 pips things went quite smoothly. Although our hit rate today was low at only 50% thanks to our three wins and three losses it was the reward/risk that really saved the day.
That’s really the key to consistent trading – good reward/risk that can pull you positive even when you aren’t winning as much as you would like. We all want a method that wins 95% of the time but that just isn’t realistic every day. We can maintain quite a high win rate over the course of a week or a month but on a daily basis unless we churn through a lot of trades we are going to have more variation. That’s simply to be expected with the small sample size of trades on a daily basis. So on those days where our win rate is on the low end it’s important that our reward/risk is high so that we can still end up positive.
That’s what happened today, as we had some small losses but also caught some very nice runs at different points in the day as well. Excluding the break-even trade, the reward to risk was nearly 3:1 today which is excellent. You can check out exactly how I traded it with Elite Range Bars in the video below: