1. The screening process must be accurate with the aim of determining whether the asset is currently experiencing exposure or not [ Volume | Open Interest | Outperform other assets ]
2. Technical Analysis [ Structure | Key Level | Smart Money Trap ]
3. Balance Stop Loss placement with proper Risk to Reward
This process is done repeatedly to consistently achieve a strategy that can also be implemented repeatedly.
My strategy does not have a 100% Win Rate, by the way; I don't think there is such a thing as a 100% win rate. If there is, then it is likely manipulated.
So far, with this setup, my Win Rate is in the range of 40-50%, but the Risk to Reward is in the range of 1:3
Which means if 1R = 1%
Then, I allocate 1% of capital as risk to obtain a reward of 3%.
Example:
10 Trades
Win Rate 40%
Risk to Reward ratio = 1:3
6 Losses x 1% = ( - 6% )
4 Wins x 3% = 12%
Overall, there is still a gain of 6%
What can be improved is the screening and Technical aspects, especially in entry timing, so the Win Rate can be above 50%
Drop the 🔥 emoticon if you like information regarding this post-analysis
