Risk Reward Ratio

H

Huskeez

Hey guys,

Quick newbie question, how do I adjust my risk reward ratio once my "STOP" is now above my "ENTRY"

Entry = $3.32
Stop = $3.30
Target = $3.60
Risk/Reward = 14:1

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Now when ever I move my stop above the $3.32 mark my R:R turns negative ?

Cheers guys
 
Risk:reward is only part of the equation for trading success. Win rate is the other core part. And, finally, sample size lets you know how many consecutive trades are needed on average to realize the positive expectancy indicated by the win rate/R:R combo.

If you want to have a flexible trade management system instead of fixed stop/target, it adds a lot of complexity to the analysis process.
 
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