Ah man, thankyou so much hahah. That's been driving me mad.
Much obliged.
TGx
Topic: Can you help me with the Math of R/R ratio when taking profit on the way? (Read 77 times)
May 15, 2021, 09:58:44 AM
May 14, 2021, 11:13:54 AM
So for example. You have a 3R trade. (3Gain -1lose)
What happens if instead of taking 100% profit at the target of '3' gain.
Its 0,25 *2R + 0,75 *3R = 2,75R
But if you have multiple take profit levels, say: TP1 -15%, TP2-25%, TP3-40% e.t.c e.t.c
Then how do you calculate this? in terms of R?
Then how do you calculate this? in terms of R?
0.15 * TP1 + 0,25*TP2 + 0,4 *TP3 + ...
So for example if you bought 1 BTC at 50k $ with TP1 at 51k - 15% TP2 at 52k -25% TP3 at 53k - 40% TP4 at 54k - 30%
We go for:
0,15 * 1000 + 0,25 * 2000 + 0,4* 3000 + 0,3*4000 = 3150$ - Reward from your trade if fully succed.
May 13, 2021, 06:31:57 AM
Hi,
I am really struggling with this and I'm alright at maths.. but I can't get my head around it.
I'm trying to figure out an easy way to recalculate the R/R of a trade when taking profit at various levels.
So for example. You have a 3R trade. (3Gain -1lose)
What happens if instead of taking 100% profit at the target of '3' gain.
What happens if you for instance; take 25% off your position at '2R' gain and 75% off at '3R'.?
So then you no longer have a 3R trade, you now to my estimate have a 2.75R trade.
But is there a math equation I can use to acuratley calculate this?
It'd be more straight forward if you only had two targets. 50% take profit at each. Then you could use the average of those two sells to calculate your R.
(For instance 50% at 2R and 50% at 3R = 2.5R upon closing the trade 100%)
But if you have multiple take profit levels, say: TP1 -15%, TP2-25%, TP3-40% e.t.c e.t.c
Then how do you calculate this? in terms of R?
Do you add the Rs all together and divide by the amount of take profit levels - but this doesn't factor in the different percentages taken at each TP level.
What a headache.
Thanks
I am really struggling with this and I'm alright at maths.. but I can't get my head around it.
I'm trying to figure out an easy way to recalculate the R/R of a trade when taking profit at various levels.
So for example. You have a 3R trade. (3Gain -1lose)
What happens if instead of taking 100% profit at the target of '3' gain.
What happens if you for instance; take 25% off your position at '2R' gain and 75% off at '3R'.?
So then you no longer have a 3R trade, you now to my estimate have a 2.75R trade.
But is there a math equation I can use to acuratley calculate this?
It'd be more straight forward if you only had two targets. 50% take profit at each. Then you could use the average of those two sells to calculate your R.
(For instance 50% at 2R and 50% at 3R = 2.5R upon closing the trade 100%)
But if you have multiple take profit levels, say: TP1 -15%, TP2-25%, TP3-40% e.t.c e.t.c
Then how do you calculate this? in terms of R?
Do you add the Rs all together and divide by the amount of take profit levels - but this doesn't factor in the different percentages taken at each TP level.
What a headache.
Thanks
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