I am shocked by the trades which I see on the traders blog.
The level of ignorance of basic trading ideas is staggering.

Contest Support:

Why not start a Mandatory Reading /Application of Basics contest/workshop(I would willingly give 10% of any winnings) for absolute Newbie traders?

I really liked the idea of trader and article contest. But it defeats it purpose and increases the chances of people entering the market with no idea about the market dynamics and technical/news side.

I dont know if I can post a workshop link(I am willing to teach) for newbie traders.

The number of trades which show up on the contest page with SL pips higher than TP pips is ridiculous.

Apologies for the rant but seriously it is really............

Yes, you can teach and also provide workshop.

Simply go to : https://www.dukascopy.com/tv/Live?path=topic/create

We would like to hear your knowledge and skill.

Thanks,
Santosh.

Just because RRR (Reward Risk Ratio) is less than 1 (or in your words, SL pips are higher than TP pips) this doesnt mean that the strategy is flawed or that a trader is ignorant.
A strategy with a low RRR should have a high W/L ratio and vice versa. At the end of the day is not RRR or W/L by themselves that define the final result but the expectancy which is the combination of both. Expectancy effectively tells you how much of the Risk you get back per trade.
Of course, in an ideal trading world we would like to have a high RRR combined with a high W/L but that is wishful thinking for most cases.

Here is an example of how expectancy is calculated:

RRR = 0.5
W/L = 3:1
Expectancy = (3 * Reward – 1 * Risk) / # of trades = (3 * 0.5 – 1 * 1)/4 = 0.5 / 4 = 12.5%

This expectancy in this example is low but it is positive! So in the long run it generates a profit. And because W/L is high the drawdowns aren’t that severe (depending upon the amount of Risk, of course).
Only if a strategy doesn’t have a positive expectancy then we can start talking about people not trading well or being ignorant. However, it is true that many traders don’t understand what expectancy is and how it is derived.

Before you post a workshop link for teaching newbies or even appear on Dukascopy TV I suggest you clarify to yourself for yourself how expectancy is calculated and what it means. Or you may embarrass yourself if you go out with your current explanation of needing to have higher tP pips than SL pips. Once you understand expectancy fully you could even cover the topic of expectancy as your first topic. I am sure that many newbies will benefit.

All the very best with your teaching.

@Robert

I had written a long reply to your post. No idea why the post didn't appear here.

Anyway in short: Your presumption is incorrect, I do realise what Expectancy, RRR etc imply and how to claculate the same. Didn't mention RRR in my post because even though Mr. RobertBric knows about it most newbie traders don't and the post is for their benefit.

I entered this trading competition basically because I was bored with the relative movement in pairs for the last month and the concept of traders posting trades with reasons was intriguing. Also entered another one just for fun. Right now I just copy my trades from the live account here(Obviously, the Lot Size, TP are different but based on the same analysis).

As for the, "Of course, in an ideal trading world we would like to have a high RRR combined with a high W/L but that is wishful thinking for most cases."

I don't think I have met an Individual trader who has a high W/L and RRR less than 1:1. Atleast not one who has been successful long-term.

Anyway Congrats on being at the top of the Article contest, and best of luck with your Trading.
@Santosh

Thanks for the link. I dont think I will be able to do a seminar/workshop on Dukas TV, I am not familiar with the platform and right now have no time(there are opportunities in almost all pairs at the moment).


I see you are in Gurgaon, I am in Delhi. Lets meet sometime would be nice to meet an India based trader.

Cheers

When speaking/writing to a person it is normal etiquette to do it in 2nd person (ie. you) as long as they are not royalty (which I am not). Using 3rd person is considered condescending and a sign of poor manners.

LOL. Now I have poor manners. Brilliant.

Oh..BTW I don't think you understood the tone or the subtext of the post.

Anyway have a Good Day, not here for a grammar/manners/trading terminology debate.

Regards