1:5 Risk Reward Ratio Strategy

Trading Discussion Risk Management Practices
21

There are 2 types of traders those who want to be right most of the time and those who are profitable.

With risk reward ratio I found that I can be wrong many times and be profitable.

I finally found a strategy that allowed me to do the 5:1 risk reward ratio. It is also a swing trading style which allows me to live my life while my trades are running.

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22

Risk reward ratio can make you lose focus, especially if you let greed control your trade.Much as it is important as a motivation factor, 1:1 is a better way to start as you strive for greater heights with 1:5. You should be contented with what you have for a start.

23

How frequently do you spot the setup/take a trade? How long do your trades stay open for? What’s the drawdown? I am curious as I go for a lower ratio usually as I like taking trades more often and am wondering what to expect if I decide to mix it up.

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24

You should endeavor to grow your profits to a consistent profit level. If you concentrate more on what other traders are doing, it can help inspire you but it can also be a distraction. You can be tempted to take a very high leverage and even trade without stop loss to get that 1:5 RR but who loses when the plan fails? You

25

I would need to lose 4 times to break even. That is why I love RRR

26

Hello,

I only trade one pair, and my setup are being placed about once a week.

Mine is a swing trading style, therefore the position can be open between one to two weeks.

Cheers!

27

If you take very high leverage, do not hedge and trade without stop loss, you can comfortably achieve 1:5 Risk reward. However, there is a very thin line between doing that and committing suicide in your trading career since you can loseall your hard-earned money

28

I suggest you concentrate more on learning forex and deveoping your strategy. That way, if you have enough patience, there is nothing to stop you from making consistent profits if you trade well. Dont let R:R make you lose your focus, and don’t be discouraged if you fail in the beginning

29

From my experience I know that most traders use 1:2 or 1:3

30

Boy, if you are able to execute trades on a 1:5, you don’t need anyone’s help here.
1:1 to consider a trade, and shooting for 1:2-1:3 is reasonable. You can always let it
run to 1:5!

31

So sorry to hear that, mate!

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