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will lose money over the long term, even if you think you find good trades. Then withdraw the initial capital and leave the profit in your account. Remember, with a winrate of 50, you just need a RRR greater than 1:1 to trade profitably. This indicator save your time. Step 1: calculating the RRR, lets say the distance between your entry and stop loss is 50 points and the distance between the entry and your take profit is 100 points. Heres an example: Pro tip: TradingView doesnt offer a Fibonacci extension tool with their platform. If the price hits the final target, your trade will close with a 9 profit. You must combine your risk reward ratio with your winning rate to quantify your edge. So, be more conservative with your target profits and exit a few pips forex demo account metatrader earlier.

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Then you can keep on making 5 profit per month, and withdraw 8,062.75 every month. I mean you pick the trade setups that either hit the targets, or at least give you the chance to move your stop loss to breakeven. Enter and exit the market on your terms. The rule says that you should place your stop loss in a position that it becomes triggered only when the direction youve chosen is completely wrong. For example, lets say we have found a trade setup with EUR/USD that has to have an 80 pips stop loss. We want to be free to do anything we want. Taking the Too Strong Trade Setups Another solution is in taking the too strong trade setups on the long time-frames like daily, weekly and monthly. Let me introduce to you the highway technique because this is like driving on a highway where you have little to no traffic in your way. In this post, Ill give you the complete picture so youll understand how to use the risk-reward ratio the correct way. And if youre in doubt, stay out. Youre probably wondering: How do you define complete? By real and professional traders, I mean those who are consistently profitable currency traders and currency market investors.

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