I can’t seem to find a good risk/reward ratio. Please help.
I’m a daytrader and trying to maintain good money mgt. Still, I am not sure on what my risk/reward ratio should be and am wondering how you guys have developed yours. My understand of a good ratio setup is, say, you should stop loss at -2 ticks and sell at +5 ticks from your buy price, and assuming that one’s accuracy rate is near 50% and the $ amount of the +5 ticks is greater than the $ loss of the -2 ticks, then one should be set up profit in the long-run.
Can someone please correct if above is wrong and also tell how you reached your ratio setup? All advice is welcomed. Thanks.
Originally posted here:
I can’t seem to find a good risk/reward ratio. Please help.
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