Generally I characterize the market with two properties:
1) Trend or range
2) Timeframe corresponding to (1)
For example, a 100 pips upward move followed by a 100 pips downward move might seem like a range bound market for 4hr timeframe, but it can also be seen as 2 short trends for 1min timeframe.
In order to be right, you have to make both correct guesses. This means that statistically speaking, you have 25% chance of profit and 75% chance of losing. In the long term, speculation will always lose.
Any idea how to solve this problem? I have been thinking about it for a long time but still couldn't find a solution. The conventional Reward:Risk of larger than 1 is useless since higher reward simply means lesser chance of reaching TP.
1) Trend or range
2) Timeframe corresponding to (1)
For example, a 100 pips upward move followed by a 100 pips downward move might seem like a range bound market for 4hr timeframe, but it can also be seen as 2 short trends for 1min timeframe.
In order to be right, you have to make both correct guesses. This means that statistically speaking, you have 25% chance of profit and 75% chance of losing. In the long term, speculation will always lose.
Any idea how to solve this problem? I have been thinking about it for a long time but still couldn't find a solution. The conventional Reward:Risk of larger than 1 is useless since higher reward simply means lesser chance of reaching TP.