Before you read this it is important to watch the video in Part 1 of lesson 3.
As of writing this post the video 'Forex Risk to Reward Ratio' by Casey Stubbs of Winners Edge Trading has clocked up 1,927 views with 6 likes. However when one considers that this Youtube video which was published on the 30th October 2010, that being nearly 4 years ago now, it really hasn't gotten anywhere near the amount of attention it truly deserves.
Who in their right mind would possibly argue that having a success rate even as low as 33.3% is nothing short of awesome. Couple this with the last component of the plan on when to pull the trigger and I can categorically show you (with proof) how your win rate can be easily above this. I will mention though at this point that I do not personally implement either of the examples Casey uses in his video, but prefer to use a Stop Loss (SL) of 50 pips and a Take Profit (TP) of 110. As you can see the TP is roughly 10% more than a traditional 1:2 risk to reward ratio, which if implemented would mean you would only 'break even' at 33.3% as opposed to showing a profit albeit a minor one as shown in the video.
In the next lesson we will cover support and resistance along with trade execution. Join me then.
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