|
5. Employ at least a 3 to 1 reward-to-risk ratio
Means for example :
You are long eur/usd at 1.0520.
IF you take the profit at 30 points, you should take yourloss at (30:3)10 points (30:3). Limit profit at 1.0550, Stop loss 1.0510.
IF you take the profit at 100 points, you should take your lossat 33 points (100:3). Limit profit 1.0620, Stop Loss 1.0487.
IF you take the loss at 30 points, you should take the profit at 90 points (30 x 3). Limit profit 1.0610, Stop loss 1.0490.
I hope you will understand it .....
__________________
Nicolas Longchamp, Realtime Forex.
|