I found a strategy from a forex coach who told me that the strategy is a superb strategy. When I asked him about the risk to reward ration, he told me that it is 1:1 and can sometimes go to 1:2 if I set a second TP point. Is it worth it?
Its OK if you have a win rate consistently greater than 50%. But at exactly 1:1 r:r and say only 51% win rate, there is precious little margin for error or drift.
1 Like
Not recommended, have at least 1:2 ratio. If it’s 1:1 you’ll need to win more than 80% of all your trades to have a decent ROI. If it’s 1:2, you can get nice profits winning only 60% of them. Well. At the end it depends on your strategy but I’m quite sure that 1:1 is not the most optimal.
Lolz! Try 1st (at least 500 trades) and then judge this trading strategy!
A bad risk to reward ratio, it’s not worth it because you would end up losing, except you would use trailing stop to keep the trade going. A 2:1 reward to risk ratio will be better in the long run.
I think that ration is still blind luck anyway. Get a better ration strategy.