Forex Trading 2018- TA/FA- Setups and discussion, page-4253

  1. 8,420 Posts.
    lightbulb Created with Sketch. 59
    Imo its a case of comparing the reward/risk, where risk is represented by the drawdown $'s (not days) and reward is the P/L. On that basis:

    Portfolio 1 R/R = 8,777.69 / 432.25 = 20.31

    Portfolio 2 R/R = 20,036.62 / 1,016.00 = 19.72

    Portfolio 1 R/R slightly better, but Portfolio 2 absolute risk & return are both larger.

    Once you know that then you have to decide what is more important to you personally - maximising return or minimising risk - that answer is different for everyone.

    Cheers, Sharks
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.