1 to 1 risk to reward ratio

Frankly speaking traders have to calculate the ratio in compliance with current market situation. So, if I see that the market is highly volatile, then probably my ratio in this particular day will be 1:0,5 or even less, because risk management is a very difficult thing. If I see that everything is okay on the market and moreover after a proper technical analysis I found a good entry point, I can open a position with 1:5, where 5 is the percentage of the reward. For example, if the position opened with 15$, then I plan to make up to 60-75$ and this is a huge risk, because I still have only 15$ for losing this position.

Well, I believe that it’s kinda good risk management strategy. However, it also has its own drawbacks, for example, low payback. I mean you will certainly earn less money if you will try to comply with this strategy. You will lose 10$ and then you will earn it back. In this case you might face stagnancy in your development as a trader.
I prefer 1:3 risk reward ratio and this thing seems to me the most profitablke for the most part of traders, however you have to analyze a lot in order to understand when the price might break the levels for example of support and resistance in order to let you earn money according to this strategy.

if you aim for 2:1 , you only have to be right 34% to stay in the game.
The longer you are in the game the more likely you are to make money. 1:1 just seems too much of a quick way to ruin

Learn to scale, use multiple take profit areas, adjust your stoploss to breakeven once TP1 is hit and add to your position once TP1 is achieved.

Scaling your confirmed winners is one thing that separates smart money from retailers

It’s just unbelievable, the rubbish that’s posted here in thread after thread after thread. Obviously a lot of it is just junk repeatedly regurgitated by bots (and obviously enough that’s one of the major ways that blatant misinformation and shockingly bad advice are continually perpetuated and reinforced in forums that don’t remove the bots), but knowing how potentially helpful the posts above by MattyMoney, SovoS, tommor and flamingoproxy are, I posted a “recommendation link” to this thread, earlier today, in a new thread asking about risk/reward.

Seeing now all the nonsense that’s been added to this thread since I originally saved the link, myself, I’m wondering whether I’ve done the right thing. It’s honestly SO difficult to try to help anyone, here, that I often wonder whether it’s worthwhile even trying at all. Yet another thread that was once very helpful to people learning has been filled with spambot-junk. :weary:

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I gave up on forex for the last couple years to focus on my career. The last thing I was working on was scaling up trades. It’s makes back testing very tedious. If you catch the right wave you could make serious profit scaling up.

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I prefer at least a 1:2 ratio because it acknowledges the possibility of losses. In my opinion, trading isn’t solely about winning on charts but also about effective risk management, which accommodates occasional losses.