๐ฅ๐ช๐ต๐ฎ๐ ๐๐ ๐ฅ๐ถ๐๐ธ/๐ฅ๐ฒ๐๐ฎ๐ฟ๐ฑ โ ๐๐ป๐ฑ ๐๐ผ๐ ๐๐ผ ๐จ๐๐ฒ ๐๐?
๐ข If your strategy wins 70% of the time, even a 1:1 can be extremely profitable.
๐ But if your edge only wins 30โ40%, you absolutely need a 1:3+ R:R to remain positive over time.
๐ง Smart traders reverse-engineer their R:R from hard stats:
โWhatโs my hit rate? Whatโs the real structure on the chart? Where is my stop actually protected?โ
Then โ and only then โ do they define targets.
โ๏ธ You canโt use the same R:R across all markets!
Gold, $BTC , and NASDAQ offer wide, impulsive moves โ high R:R trades are structurally possible.
Pairs like EURCHF or USDJPY often require tighter stops and more modest targets due to slow price action and compression.
โ Use ATR (Average True Range), session volatility, and higher timeframe liquidity to gauge how far price can actually go โ not just how far youโd like it to.
๐งฒ So hereโs the professional approach:
Let structure define the stop, let context define the target, and let your stats define if that R:R makes sense.
If your system says 1:2.3 is optimal with 47% winrate โ thatโs your edge. You donโt round it up to 1:3 โjust becauseโ.
๐ก ๐ ๐ถ๐ป๐ถ-๐๐๐ฟ๐ฎ๐๐ฒ๐ด๐? ๐ฌ๐ฒ๐!
On clean setups (e.g. H1 structure break with HTF momentum), anchor your stop just beyond the structural invalidation zone. Measure realistic target distance using ATR ร 1.5 and check for upcoming resistance.
If the projected R:R fits your tested winrate โ you take the trade. If not โ you skip it. No emotion. Just process.
๐ Save this post so you donโt forget it mid-trade โ and tap โค๏ธ if it hit the mark
