aliassmith wrote:How do you get high RRR on your trades?
Its a balance of previous price action and current price action.
Pretty much every successful trader uses price history to determine liquidity levels ,trends, and/or some indicator math.
So say your target is 30 pips away you have information based on older history. Now your recent price action suggest you need a 30 pips SL. Well you are looking at a 1R trade.
So if you get a market defining stop loss of 20 pips you get 1.5R this goes down to 5 pips SL where you get 6R.
The market will give you the possibilities if you can see them. SL that makes sense coupled with historical targets. You will also need the leverage to make some tighter SL work out depending on your TF and % risked.
$100,000
1% is $1000
$1000÷5 pips = $200/pip
$200÷$10 = 20 lots on EURUSD
$1000×6R = $6000 or 6%
Analysis, Math, and Application
Examples of RRR manipulation.
A single trade opportunity on the GBPUSDM15 during London
A long trade shows itself with an MA bias, a candle bias, and a pullback
The target is near where the tan box is placed.
There are 2 charts with 2 entry options where the price crosses the purple entry line above that green arrow.
There was a 2R options and a 3R option