Newbie to the game here, currently on a demo account, but considering going “live” soon.
I spent some time in the chat room the other day discussing risk to reward ratios. I am currently working on a 1:2 basis, so in one trade say, I will set my Stop Loss so I don’t lose more than £20, and my Take Profit £40.
I understand using this concept if you profit just 1 in 3 trades, you break even.
I was thinking today about other possible ways to look at it, and one thought that came to my mind was roulette. As some will know, some people use a system (the name escapes me and I cant be bothered to google it), whereby you play on the “Evens” areas such as Red and Black, and for each time you lose, you double your stake next time. So, if you put £10 on red, and it loses, the next time you put £20 on. If that wins, you have spent £30 but got £40 back.
So, my thought was, what if you did this with trades. So, set your SL, and TP at the same amount of pips/money, if that trade doesn’t come off, you double the amount you put on your next trade.
This is just a thought I had, and I don’t recommend it, or recommend against it, just wanted to canvass opinion!