Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. Today I want to share a basic trading plan that you can follow to quantify your trading edge. 📌 Step 1: First, start from the higher timeframes like Daily/Weekly to identify the current long-term trend. is it bullish, bearish or stuck inside a range? If the price is...
key Takeaways 1. The risk/reward ratio is used by traders and investors to manage their capital and risk of loss. 2. The ratio helps assess the expected return and risk of a given trade. 3. An appropriate risk reward ratio tends to be anything greater than 1:3. How to Measure Reward-to-Risk (RRR) ? 1. Evaluate the potential price levels for your stop...
Lower RRR = Low drawdowns (Lower consecutive losers) Higher RRR = High drawdowns (Higher consecutive losers) To not go against the prop firm's drawdown rule of > 10% rule, You should risk.. risk per trade = 10/consecutive loser Example. risk per trade = 10/7 = 1.4285% So you should risk < 1.4285% per trade.