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Old 15-01-2003, 03:59   #10
nico3725
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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 .....
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Nicolas Longchamp, Realtime Forex.
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