Forex Risk Ratios - Should You Use Them?

[@GG-tf9gy]

A good trend following system will allow you to profit on the trends while at the same time somehow mitigating losses on whipsaws. By using that rule of scaling out you are protecting your bottom line while at the same time allowing yourself to profit on trends. I really appreciate this information. Thank you.

[@zacchaeusisrael3466]

You’re the best in the business bro

[@magiczeroone]

As a brandnew beginner in FOREX I never understood the other "Gurus" praying that it is so important to stop your win! Everybody is teaching those ratio-things… Stop-Loss is ok, but cutting my potential win never sounded logical to me. Using those 2:1 or 3:1 ratios is preventing everybody from really playing the game and win. I can see now that this is really b*sh*. Stop-Loss and Scaling out is great! Thanks, VP, for the truth about this.

[@ukdrillmusic7734]

No one makes it in forex as retail traders

[@earthwalker4538]

May God bless you, and I know already has. I can't thank you enough for your amazing direction and actionable motivation. Anything I can do to help you back then let me know. Keep up the great work VP I am daily acting out these lessons and very thankful!

[@Duospace]

Agreed!

[@hesit7591]

@@Duospace you having good results trading with an algo?

[@Calraq]

Hey VP, wanted to start this comment by saying I am a huge fan of your channel and have learned so much from your videos. I rarely ever comment but I have watched all of your videos and still get excited when new ones come out. I wanted to write this comment to tell you about an indicator I have had a lot of success with that you have mentioned in one of your videos talking about trends. The indicator is Super Trend, you used it as an example of a chart indicator, thanks to you I tested the indicator and found that on settings 10,1 the indicator has a lot of success. It does have some false entries but paired with the other pieces of the algorithm it works great. I am currently using it as my primary confirmation indicator. I just wanted to thank you and share one of my great findings with you, hopefully you can add it to your toolbox.

[@BuckI2Bdad]

VP, I am a new sub to your channel and want to say thank you. I have been trading on and off for 2 years with both live and practice accounts with some small successes and have been to some free introductory classes that have helped a little. However, just by watching 5 of your videos you have cleared up a bunch of the bad habits I have picked up on my own and the ones I was taught. I will start trading live again after go through the rest of your channel. Thanks!

[@theforexcodes8133]

Excellent. Its about eliminating the bad habits first.😉

[@Ernaldaes]

Going over your videos again and again, drilling the principles in like life itself depends on it ;-)! I salute you sir, even in the far Belgium your student base is growing.

[@NoNonsenseForex]

More Belgians is never a bad thing!

[@fishertheadore6095]

@@NoNonsenseForex, Jean Cluade Van Damme would approve of this Message.

[@edgarspaulovskis6561]

Discovered this Chanel a week ago, since then all my free time has gone in watching it and i don't have a lot of it. @ this point i feel like a water filter letting all the great tips thru and filtering the shit out. Have learned a lot more in this week than slowly figuring it out by myself for the last year. Thanks VP! Your a legend.

[@nicklas8112]

I feel like you might be the "Richard Dennis" of this century VP, and we are your turtles. If you read this comment, thank you for teaching all this valuable stuff, it is really life-changing, you are a good person.

[@Red123Road]

thanx for your time! the least I can do, is to like and comment on your videos! I have been trading for 15 years and from I start to follow you, I have increased in my wins with over 40%. So THANX!!!

[@dangeloaugustok]

I am grateful for learning english out of games & articles, just so i can listen to contents like this one.

[@Kal1Don]

When I first found out about Forex I wanted to learn about it but I couldn't afford the classes. Your videos made me learn a lot and I dont think i'll nothing in those classes compare to what you've taught me.. my Win rate is getting pretty good and with my stop loss on point. I am becoming profitable. You doing this for free should be illegal lol Thanks bro

[@RixiRooTM]

Yup. Going over your videos... over and over... relentlessly. Every time I come back, after watching or reading something else of yours, I pick up something that I missed before! You are changing my life, and my mind!

[@dragonitivic]

i think this is the most important video youve ever made. This is pure gold. This is what separate a breakeven trader from a 1%er. You are unique. Thank you

[@erich-heinbotha2488]

This is the type of stuff you don't find anywhere else or when you do they give a brief explanation. Recommended your channel to all of my fx friends

[@benedictisaiaschan2630]

Every videos you make is so logical and practical! I couldn't wait learning every single thing you are about to share on this amazing channel. You are truly an extra-ordinary Mentor! God bless you more Sir VP!

[@vocalist1]

Just going through your videos from the beginning and I've got to this point. I've been trading for 25 years, I've won and lost but never was consistent. It's testimony to my love of charts and my burning desire to never give up. I've read Michael Covel's trend following book over and over again but never had a hard and fast rule based trend following system. For me, this video in itself is worth it's weight in gold and is a real game changer as far as I'm concerned. You should be right up there with the turtle traders, Bill Dunn and Ed Seykota and your value is more important because you are a teacher and a guru. Thank you for doing something that no one else is doing. Ash

[@ExpatTraderFX]

Sometimes you need to know when to give up, if your going on 25 years and still haven't made decent profits than it's possible its not for you and don't waste another 20 years

[@dee23gaming]

25 years?? 💀⚰️ I'm finding profitability and consistency after 1 year and 4 months. So you've been unsuccessful at trading for longer than I've been alive.

[@hunnypuff9620]

WOW JUST WATCHING THIS VIDEO AND LEARNING ABOUT WHAT YOU SAY ABOUT BREAKING MY TRADE INTO 2 IS EXACTLY HOW I TRADE AND BOTH OF THEM WIN ALOT OF THE TIME. I KNEW I HAD A POWERFUL SETUP I CREATED I JUST DIDNT HAVE CONFIRMATION UNTIL I LEARNT ABOUT SENTIMENT. I CAN NOW USE MY TRADE SET UP TO PLACE ACCURATE DISCAPLINED TRADES ALL THANKS TO YOU. I SO UNDERSTAND THE WAY YOU EXPLAIN THINGS ITS SO SIMPLE BUT FOR YEARS I STRUGGLED DOING THE THINGS I SHOULD NOT HAVE. I NOW ONLY USE A HIGHER THAN USUAL MOVING AVERAGE CROSS ON A SUPRISING LOWER TIMEFRAME AND ALONG WITH DAILYFX I CAN NOW PINPOINT MY TRADES. I WILL DEFINITELY GIVE CREDIT TO NO NONSENSE FOREX WHEN I SHARE WHAT I HAVE LEARNT. ABOUT BLOODY TIME IS ALL I CAN SAY LOL. I HAVE WANTED THIS FOR LIKE ALOT OF FAILING TRADERS THAT NEVER GIVE UP YEEEEEEAAAAAAARRRRRRSSSSS LOL

[@OlegBin-e2c]

VP I see your point regarding using Ratio in the trading. I also see that lots of traders misunderstood of how and what for Ratios should be used. Actually, Ratios is a confirmation indicator and the rule tells: "Do not trade if you have at least 2:1 or better P/L ratio." It does not say take/cap your profit at x2 times of SL.

[@willlister1854]

I’ve cancelled my Netflix subscription due to these videos lol

[@AtRest2k]

We're you able to get the aroon indicator?

[@georgebryandiaz7061]

how has your trading been since ?

[@bitminer9068]

Ok VP i m new made some mistakes. But now i m watching every video again second time. Made 8 trades in 2 days and are still running at the moment and 6 off them are profit already... man thank you! Best regards

[@cdowis]

I want to say that this video and the scaling out video have turned my trading around to consistent profit. Amazing!

[@NoNonsenseForex]

YES! This playlist alone can change things completely. Glad it helped.

[@AbrahamLeanin]

This is now my favorite forex channel on youtube.

[@yaseenkhaliq]

I LOVE THIS MENTALITY !!!!!!! i nearly paid for a course!!!! amazing 2.5 years on !!!!! GOLD

[@thesunris]

I've been doing 1.5 ATR Stoploss, 1ATR half profit, let the other half run. I stop if it crosses below baseline. HOWEVER. Sometimes a F YOU candle just comes down to my stop loss making me lose a ful 1%, which is a big big loss compared to the half-wins I get. Any solutions?

[@MegaMoneylord]

You are helping multitudes with your frankness and no nonsense approach to your presentations. Thanks bro.

[@Ricardo-ep4mr]

Have any life coaching videos? 😂 The shit you say always makes so much sense. Thanks VP you're a legend man. 😎

[@mohammedalsenan2433]

VP you are the best ... If I knew this when I started trading my trades would be totally different.... I am still watching and consuming all the content and applying them and I can not imagen the improvement I am in so far .... Thank you thank you million thank you

[@StevenByrne1987]

I am disappointed i did not find you sooner! I recently found you on the Apples Podcasts earlier this week, currently on episode 19 and I am now going through youtube to. Listening to the podcasts when travelling, cooking etc. Watching the videos in the afternoon. Thank you for sharing VP, you are very good at explaining things. Thank you :D

[@yasiral_asady7623]

It's probably the first time i comment on youtube but men you made do it i've been watching your videos for 3 Days from the first video and writing notes and Never skip one video and all i can say that you're a LEGEND thank you and i really appreciate your work ❤

[@realwillbaker]

If you realize you won those trades when the AROON hit 100% not when it first cross over you are not using it right plus change the settings to 3 or 7 for faster entry

[@starshipdoorgunner255]

I have never taken so many notes for YT videos. Thanks for the awesome content.

[@nixtermmh6922]

i risk between 25 and 40 pips (calculated with a piece of my algo) with a 100 pip TP so i guess thats 4:1/2.5:1 . when the trades hit 50 pips i move SL to entry and let it run. actually works phenomenally well in conjunction to trend

[@johnathangrey3463]

ME: yes? You: NOOO!!!!

[@cazkeymekam6427]

Once again man thank you. This should seriously be one of if not your top video. This with proper risk management seems like a sure thing just by itself.....not that I'm about to just flip a coin but still this is powerful stuff.

[@chavonmurray2029]

Where is that indicator on the metatrader 4 app?

[@themixchannel1816]

The most realistic Forex guy on KZbin..:) lol

[@skanskar]

I backtested the aroon and was giving me 50-60% win ratio. I produced a bar chart and my losses were small but the wins were big

[@nominalkeys7656]

Can i know how you got the aroon indicator?

[@focus45554]

The problem with risk to reward ratio mainly is it forces you to put a stop loss at certain places and guess what, the bankers know the most common risk to reward ratios meaning they know where the stop losses are and they will drive that sucker right towards them all day long.

[@itsdavida5708]

Going through all these playlists and videos making sure to leave a like! Thank you Vp - I will make it!

[@Shah2370]

VP you are a genius! Man love your videos and honestly I cannot thank you enough for all your advise, videos and podcast. I am fresh new to this but am I glad I have found your channel. Things are so confusing out there but you make it sound so easy. God bless, I will never forgot you for the great work you are doing. All the best.

[@hakeem4793]

Nnfx and (l)earn instead of Netflix and chill for me 🙋‍♂️ using my time right this lockdown

[@incatraderfx]

Best advice from this video, “ never cap your profit”. The way I take it, “ SL in profit, let the compound effect take over”

[@theforexcodes8133]

Sounds reasonable...

[@resvelpagara5760]

I have a lot to catch up ... I learned things and applying it in my trade.

[@Carma.Repair]

Amazing I can't wait to try what I have learned from you so far and look forward to seeing what else you have in store 👍❤

[@chilidog73]

The aroon up and down shows the red as being aroon up in the default settings??

[@jacharakis]

Thank you. Ratios using most of the dirty dozen tools have battered my trades and my trading psychology way too much. Not any more. Thank you, Patrick.

[@gotomortimer]

Thanks for all the info given to us...how psychologically are you prepared to see a pullback to breakeven or even a loss after being 100+ pips in profit.. ?? maybe SL is moved to breakeven and it's not a loss.....but... what about the time invested in that trade?.. maybe 2 weeks if we trade the daily chart? Is it wise to return profit to the market?? Man How do you deal with that??

[@NoNonsenseForex]

Gotta think long term. Emotions have no place.

[@KriMi68]

your way of telling all this things is so refreshing. :) So bad, that I found this channel so late. But I already took the lessions on your site and made a new setup with your advises BESIDE my trading. Just for curiosity.... I will inform you about my experience.

[@Jazzy1247]

Michael Krischek This feedback was 6 months ago I need to know the results if you don't mind.

[@pauliusjarasunas1757]

Love this channel ❤ this is my no 1 preference to watch. Can not thank you enough!

[@hunnypuff9620]

JUST A QUICK QUESTION WHAT IS THE INDICATOR YOU HAVE AT THE BOTTOM THAT LOOKS GREAT ON A DAILY CHART :) GOT IT aroon up and down indicator "NOT BAD JUST HAVE LOADED IT TO CHART BUT NOT SURE IT WOULD HELP ME BUT IM SURE IT WORKS WITH YOUR SET UP FOR SURE CHUR :)

[@cheeskeyfx1541]

Please do you know the name of the indicator VP USED as exmple I hv been looking for it please if u do help A friend Thanks VP FOR YOUR CARE WE APPRECIATE

[@HUCERBH3947]

Cheeskey Fx i think it’s Arron, but it sucks

[@RTMoney]

The Aroon Indicator (often referred to as Aroon Up Down). You have to tweak the setting until the cross matches the entry or exit point in the trend. It is set to 14 by default. That setting sucked. But I played with it until it matched the beginning and end of trends. Boom.

[@Randrez]

RT Mason what setting worked best for you ?

[@Dimrain13]

Interesting, my main question after watching this is... Why scale out when you can set a trailing stop loss? Seems like that would allow a good way to exit without worrying about losing profits. Maybe I'm thinking of it incorrectly.

[@NoNonsenseForex]

Trailing stops don't come into play until your up a lot more. Secure wins where you can, then worry about those later.

[@matthewyuki5321]

Love you bro, putting in the work🙏

[@lodersracing]

What is the difference between Scaling Out and Scaling In ? Thanks

[@mohammadzakirhossain2384]

Dear, thanks for ur different approach of analysis which synchronize my mind. All the indicators are lagging for analysis and want to be avoided. I am new but watched all ur podcasts, sometimes complicated, inspiring, eye opening and sometimes very indirect . Could you be specific about leading indicators(if any).

[@SlogOnTheTyne]

What is your opinion on the Trend Magic indicator?

[@jonathanpearson2984]

Thanks VP. Great video and even better ....the lessons within!

[@constantined9015]

I m still training myself but I would say that ratios may be used instead of an exit indicator at smaller time frames where indicators might be confusing! Did I get that right?

[@NoNonsenseForex]

No. Capping your upside is capping your upside. Never recommended here.

[@mighty_wolf]

Holy shit this video right here is going to change my LIFE! Thank you infinitely VP!

[@chaoqana8553]

Glad I sticked with the nugget. Just started trading again after blowing my first account. Thannks VP!

[@shlabedeshlub3334]

How did it go so far?

[@papagula23]

what indicator u r using. i know that acording to u is not the best but at least....

[@nostromotrades]

hey VP! you should consider making a Telegram or some kind of community chat where the community could talk to each other. I think it will thin the number of basic, and repetitive questions for newcomers. It's great for people discussing ideas and helping each other especially newbies.

[@NoNonsenseForex]

There are a few out there, I just don't know the links

[@TysonGunterPLY]

I am enjoying your videos VP. Thanks for making them. I have a question. In the pairs the big banks don't mess with, wouldn't support and resistance be valid? There isn't a big player manipulating the market?

[@NoNonsenseForex]

No. Those pairs are just derivatives of those currencies against the USD. S&R is useless pretty much everywhere. Did a video on it.

[@TerranZerg]

This is the best channel about Forex!!

[@jeanannosier6225]

hey i was watching your video and also trying to practice what you were trying to show us on how to minimize or negate my pip loss. what are the input numbers for that strategy?

[@bradymacaulay9311]

Jean Annosier not completely sure what all you’re trying to ask but there aren’t specific numbers that negate pip loss. It all depends on what chart your trading and the stop loss you calculated for that pair. Go watch the risk video and I think that will clear things up. Cheers.

[@klackers]

Let's just say I will be sticking around for more gems like this. You rock, VP.

[@edidiessang2148]

God bless you bro. That is all I can say. I'm always so impressed.

[@smayer97]

One thing not talked about is using ratios as a filter... that is to use it to filter out trades that have little chance of achieving the RR Ratio.

[@Mike-Downs]

This video has solidified something that I've thought for a very long time, and have been kicked off of webinars , and out of "Trading groups" for. That ratios make no sense, and the majority of people that use them are hope traders. Wanna revenge trade? Use ratios.

[@NoNonsenseForex]

Welcome home.

[@Mike-Downs]

@@NoNonsenseForex Thanks, words can't articulate how good it is to be here, and on this journey.

[@matino717]

Your video about crypto point to your management playlist as well but how the HECK can we follow it if there is no calculable pip value for BTC...? Got wrecked last year and really would like to get back in the game without the same mistake... heeeelp..... x)

[@scorpionbubai]

Your videoes are like a piece of gem.

[@SBTrading-c7v]

I feel like the aroon is apart of your algorithm. Ima keep it in mind. Beautiful video!

[@dazza4k303]

It’s in mine

[@EItinerant]

How is the Aroon going? VP says "I don't even recommend this one; it's just a basic indicator." So I'm not clear how he feels about it.

[@retrodub7199]

Brilliant insight, Thanks vp from Ireland

[@randominthemakin]

why 80 PIP as TP target on the GBPCHF?

[@bottle1211]

I was doing 1.25 to 1 in my back testing. And after testing my strategy thousands of times, one thing I noticed is how much of the actual trend I was missing each time. So I knew there had to be a better way. I was profitable. However I knew I was leaving so much on the table. Still waiting for the video in series ( hopefully) when in the day do I start trading. I'm sure its there somewhere.

[@gnt4676]

Hey ! Thks for the good work. But how do you set the partial TP level if not with ratio ? Even if 1 or 2 ATR ?

[@harry_bonkers]

Watch the Scaling Out video kzbin.info/www/bejne/qnulnomemsuAm6c

[@-Charles-]

He is not saying you can't use a ratio to set a partial TP. He is saying don't use a dirty dozen ratio, and don't cap your profits with a ratio.

[@willhernandez6753]

Thank you, man I want to leave a comment on every video and once im through my last one youll see all the changes ive made progressively through each video.

[@rick9308]

where did you get the 80 pips for 1/2 tp from?

[@syk-8031]

i want to know this too

[@jcrxci]

@@syk-8031 Watch his ATR video

[@sevyusevs2008]

taking profit and moving sl to break even is like, entering the lotterty with profit, thank u vp

[@synetic707x]

so remove take profit, change stop loss to trailing at break even

[@ronaknathwani5142]

Hi Vp, when will you be releasing how and when to take profit video ?

[@bookbearerplus]

I am falling in love with your content!

[@mariosalvador6340]

I was waiting for some golden nuggets while on my grind on all of your video. I will become one of your REAAAL killers :D

[@PascalLafond]

Fantastic stuff. Immediately subbed to your channel.

[@anon8730]

one reason to cap up side is when you do not have the time to watch your charts all the time and do not have the time to set your stop loss at breakeven.

[@VilkasDe]

Loving all the videos so far! Already recommended this channel to my FX trader friends :D

[@NicholasHuang09]

What you just shared is life changing! Thanks ;)

[@sarahwoodmansey1990]

would you cap your upside if you can't get to your trade to see when to take profit? say you're at work etc

[@NoNonsenseForex]

If you use the daily chart (podcast episode 3), you wouldn't have to.

[@sarahwoodmansey1990]

I’m actually beyond excited that you replied to me, 9.40 pm before the candle closes at 10 pm - only time I need to check. I get it now! VP you are a legend. Thank you !

[@danstone3673]

I read most of the comments before I thought I'd throw in my $.02. I'll admit, I didn't think a video on ratios would elicit such a degree of polarization with regard to some of the opinions scribed herein. There were some who seemed genuinely offended that the very notion of questioning the "ALMIGHTY 2:1 RISK TO GODDAM REWARD RATIO" was sacrilegious and those who oppose it should be banished. I wonder if the point was missed...I apologize for this tome, but it's doesn't cost anything to try and help those who might need a little nudge in the right direction. 1) Trading any ratio is an all or nothing venture. It's basically binary - it either comes to fruition, or it stops out. Amen, period, and end of story. Most retail traders do not place multiple trades from the same price. It's not what we were taught, nor was it ever advocated by those who "teach". If you do, then you my friend, are an anomaly and Godspeed in your trading. 2) I have in fact, heard those discuss scaling out to some degree but many do not actually possess the discipline to take a preset portion of their trade off. That's greed a-knock'in - one of the two demons that will stymie your best efforts. Hence - place two (2) trades. Easier to take one off, mentally and emotionally. 3) If you trade an algorithm with a decent exit indicator, more often than not, it will signal you to exit a trade before you hit your stop. It's not personal. The market is not screwing with you. Take the trade off and look for the next one. Business as usual... 4) Why, why, why would you want to stop a trade in profit with a fixed (and arbitrary) point of profit? Lookit - I'm not trying to piss anybody off but seriously - think about it. "Hmmmm...the trend is strong with this pair, but I'm at my rinky dinky R/R ratio (which was probably based on a small stop from a support/resistance/trend/fib/pivot/imaginary line) so I'd better take my rinky dinky profit. After all, nobody went broke taking money off the table, right??" Hells bells...I'd rather be smart about it and *A* Use an exit indicator to get out. *B* Initiate a trailing stop at some point after moving your stop initially to break even with a number that works well for you (I've played around with some real killer indicators that calculate a trailing stop based on ATR. Fucking awesome runs, in my humble opinion). *C* Watch volume for signs that the trend may be entering a consolidation phase or a counter trend reversal and tighten your stop in case price decides to back over itself. Protect yourself, and your position. If you are from the R/R ratio camp and it works for you - carry on as usual but I'd imagine you're intelligent enough (since you're here listening to these podcasts) to admit that this concept has exceptional merit. Try it on a trade (demo account please) and see how it does. Peace, out.

[@JLH1956]

Taking God's name in vain just made me stop listening to you altogether. To many your profanity toward the God that created you is offensive. Stop it!

[@bottle1211]

@@JLH1956 You missed out on some good information.

[@melcoool]

hi VP, thanks a billion for your generosity.... i found you before i paid for a professional course, and man i can tell you the great differences of your trading style (algo) with the rest that i've learned.... Can't thank you enough like others do..... now i have found my confirmation indi and baseline, still testing and searching for the right volume and exit indi.... working hard hehe....

[@shivampatel8312]

what tools/indicators should i use instead of the dirty dozen?

[@nicolasgomez5207]

Find out ;)

[@phillipp6432]

Hi VP, this might sound stupid but its got me stumped? im confused by what you mean when you say "take half my trade off" and then "move your stop loss to break even"? if i have one trade open and it goes to + 80 pips how is it possible to take the 40 pip profit without closing the trade? the only way i see securing the +40 pips is to move the stop loss to the +40 pip mark in case it was to retrace to that value again. Thanks in advance.

[@phillipp6432]

HAHAHA right after this comment you just answered my question in the scaling out video.

[@cheeskeyfx1541]

Try to share it here we can also see it

[@guillaumelanglois4511]

At some point I'm wondering if VP's method will become so popular that Big Banks will develop counter measures.

[@Chip_loves_zip]

As he encourages us to make our own trading system, it wil be very difficult for the big banks. He does not give the system itself; only the structure.

[@threestans9096]

how does VP feel about pitchforks ? i’ve been charting with them a lot lately and boy do the markets respect the levels. not all the time but easily could make $ using them. i haven’t taken any of them live though.

[@KingJT80]

you probably have watched his video on trendlines. he thinks theyre voodoo

[@tnelugolla]

Thank you VP, for fantastic knowledge you share, you are a great teacher and a life saver.,,♥️🇱🇰

[@wesentz2112]

Fuck yeah!!! I'm looking at this from a new perspective. Thank you for being so thorough.

[@mosconi4539]

Who do you think moves the money in crypto?

[@Dota2Perspective]

what is the favorite timeframe of the banks? or does they have one in particular?

[@A_friend_of_Aristotle]

My experience and from what other traders have told me, the H4 is their favorite time frame. Just what I've seen and heard.

[@ArunHDGaming]

VP, it seems like a 1:2 ratio works better with the S&P500 using a 0.5ATR stop and a 1ATR tp, losses and initial profits cancel each other out. It works for me, what do you think?

[@NoNonsenseForex]

Easy to say now. I just keep it consistent. Don't change things just because.

[@ArunHDGaming]

@@NoNonsenseForex fair enough, but I've backtested it through 2019 and the winrate is 61% for my signals.