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Risk Reward
If you want be a successful trader just remember these rules:
Never Take more then 1% Risk of your account in 1 trade.
Never close Trade before 1:3 , if its going to SL let it hit...Take SL or Tp nothing in between
Max 2 trades a day. If you hit first TP, stop trading. If you hit first SL, try another trade ,no matter this trade is TP or SL ,stop trading you are done for the day. Just chill.
Just repeat this process on your strategy. You will never wash your account, Never.
Solid rules, especially the 1% risk per trade and the discipline to stop after hitting targets. These fundamentals keep most traders from blowing up their accounts.
The challenge is actually sticking to them. When you're up 15% and the market looks "perfect" for one more trade, or when you're down and want to recover - that's when discipline breaks down. We've all been there.
That's why I moved to automated trading. A bot doesn't care if it's winning or losing, doesn't feel the urge to revenge trade, and won't "just take one more" because the setup looks good. It follows the rules 100% of the time, including stopping when conditions aren't right (high spreads, news events, excessive volatility).
Your rules are the foundation. Automation is what makes them unbreakable.
1% risk can be a solid guideline, but some traders need less and some can handle more depending on the system and drawdown tolerance. The “never close before 1:3” part is the one I’d be careful with, because a lot of profitable strategies don’t average 1:3, and forcing it can make you pass good trades or give back gains.
Good rules to build discipline, but traders use risk and RR in different ways. Fixed numbers like 1% and 1:3 can help some people, while others do better adapting position size and targets to volatility and market structure. The real differentiator is consistency and avoiding emotional decisions, not a single “universal” set of parameters.
My own approach has been systematic and focused on risk control rather than forcing a specific ratio. Over time that has worked well for me. My signal has grown more than 1000% thanks to that.
Yes,,and No in the same time. True..you need good discipline...but 1:3 is not a must. I am personaly adapt lots based on volatility. I am also adapt lots based on what pair do i trade. 1:3 is good..but not always. If you are doing manual trading DISCIPLINE IS A MUST!..but in order to have that..you need to have fail in the past..to learn from it and adapt it so it won;t happen. If you are doing and setting one AI..like i am doing. ..First do backtime testing...check to not have more then 4000 Mismatched Chart errors on the raport in 3 months period...if you got this..YOU MUST replace the history from History central.If you are not replacing History...in backtime testing you will have BRILIANT results...but when you change from backtime testing to Demo account....you will lose 90+ percent of transactions. . If the result are good in Demo as well..is time to move on real account..with SMALL lots...0.01..just to test the market!...use it...for minimum 3 months.. If you are happy with the result.. is time to do it for good!. My strategy is simple!!.. i did work to my Ai for almost 2 years..i know what is he capable..and because of that i am not interfering.. because behind it..is a logic that is runing!. I not opening any transaction if the market does not respect minimum 5 of 7 indicators. I did use my time to create one ai...now is runing live after 2 years of design. I will let it slide:X...and from now one i will invest in my knowledge....I HAVE LOTS OF THINKS TO LEARN!. Money management....knowledge...and iron discipline.This is what we need