I go for 1:2 risk to reward ratio or even higher sometimes and that maintains my profits very well. But if I find that any trade is going with lesser than 1:2, I drop the trade immediately.
Therefore, do not risk the trade which is not giving you enough returns.
If you go by the words of market strategists, the ideal risk-reward ratio should be 1:3 or to speak technically, it needs to be three units of expected returns for each unit of additional risk. Nevertheless, thereâs no such thing as a minimum ratio. Itâs actually quite simple. If you have a 1 to 0.5 risk reward ratio and your win rate is high, you still end up making profits.
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1%. One Trader. One Day. One Pair. Could be 4 Pairs. Still 1% on each.
2:1 is the idea ratio to go for if youâre a beginner. Minimum risk on the amount you are trading means that youâre risking limited while facing the real market trading movements and even if you lose, it wouldnât hurt your pocket.
it is possible to invest into a 0:1 risk:reward ratio, if $$ are invested with a fund that understands this strategy.
zero risk. >0 reward