tag:blogger.com,1999:blog-847353783015972405.post6920989421194213252..comments2024-07-09T08:54:08.623+01:00Comments on ElectronicLocal: Lies, More Lies and Statistics - Part 2Electronic Localhttp://www.blogger.com/profile/10539999419310383613noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-847353783015972405.post-32507191942191027792010-08-06T07:22:02.227+01:002010-08-06T07:22:02.227+01:00Nick, see Friday's postNick, see Friday's postElectronic Localhttps://www.blogger.com/profile/10539999419310383613noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-72044798792246927452010-08-05T21:43:38.199+01:002010-08-05T21:43:38.199+01:00Hi EL, Thanks for a great blog! I'm learning a...Hi EL, Thanks for a great blog! I'm learning a lot.<br />My question is this - when considering risk/reward, do you think of this in terms of probability or money? e.g. Dalton et. al. suggest a trade should have at least 2 points reward potential to 1 point risk with at least 50/50 chance of success (eg). BUT if you risk say 2 points with a 70% chance of at least 2 points reward (implying 30% chance of 2 point loss), then to my thinking, that is pretty much the same thing - actually better with the law of large numbers playing out. Even with the odds closer to the 1:2 ratio, say 35% loss 65% win with even points, youre still on to a winner until commissions come into play :). <br />Is this your line of thinking. Sorry if I'm jumping the gun.<br /><br />Rgds,<br /><br />NickAnonymousnoreply@blogger.com