All my scalp/day trades are inverse as far as risk to reward, I will risk up to 3 to get 1, but I know my stats well where 1% of each signal can have 2 losses in a row, so when a loss happens, next of same signal trade I will do double or triple contracts so I can wipe out intraday drawdown. I think most traders have no clue of keeping stats on their trades, difference between of dreaming and achieving. My losing/breakeven percentages are very low. I look at trades like grapes, if kept too long on the vine, they go rotten. In other words have a time limit if after you get in and trades becomes stagnant IMHO. Most of my trades regardless of timeframe have 1-3 bars to be going in desired direction or am looking to get out with a tick.
I very seldom read when not to trade a signal, chart patterns, if you really study and test them for stats can negate a few or dozen trades a day. In any day, chart patterns will negate up to 2 dozen signals for me on one system. And most of the negated signals would have been partial or full losses. Study ends of trends for patterns and test them, yes this takes time, takes hardly any time to lose your account.
