Two for one. One for me, zero for you. Forex trading idea.

The mathematics of the headline to this article makes no sense, and its not supposed to (wich im hoping you've figured out by now). The headline - "Two for one. One for me, zero for you" is a screener, an edge, a filosophy or whatever you choose to call it. It basicly meens that when a trader makes a decision based on the fact that he needs to make twice as much as he's risking, i will win and he will loose.

This hypothesis is based on my general edge to the market - 80% of retail traders loose Money, find out what they do and do the exact opposite. One of the things they do are trying to find companionship amongs other traders that are just as bad (as mentioned in the last article about the "We phenomena"). Another phenomena is the absolute fixation with positive risk/reward ratios. Trader Dante mentions his views on risk/reward on the pod Chat with traders, and thats where my idea of taking advantage of this fixation came from.

Does this meen that a positive risk/reward ratio is a bad thing? No, of course not, its a great statistical edge that many successful traders use. However, when a lot of traders are so fixated with their risk/reward ratio that they only look for trades that gives them that positive ratio, they get easy to hunt down because of the fact that if they can see a good two for one trade, so can i. And since i know that 80% of them will loose, ill know exactly where they will loose and where the market is likely to stop them out.

This is not a strategy that tells me exactly when and how to take my own trades, it does not have clear entry levels nor does it give me a good point to close my position when im wrong. Its more of an idea that the market gives me opportunities when everyone else thinks they have the golden opportunity. My own position management when taking a trade based on this idea is depending on the market enviroment of that day/week.

The concept is narrowed down to this:
Find levels where its obvious that a lot of traders are going to take position based on that its a ”nice risk/reward trade”
Wait for it to hit the level and react to it.
Counter trade the reaction.

This type of approach to the market is what made me profitable.
Avoid chasing the succesfull traders strategies and instead focus beeing contrarian towards the loosing side.