hi guys,
what are the day trading strategies which could give 1:5 or more risk reward ratio
hi guys,
what are the day trading strategies which could give 1:5 or more risk reward ratio
I think the key to sensibly operate at 1:5 and above RR is to be near about precise on the entries. The idea here is to enter at the start of when the price starts to ‘take-off’, which makes a small SL sensible, therefore making the Risk part in RR tiny and the expected Reward comparatively large.
You shouldn’t fancy a high hit rate in this technique, a 35-40% is reasonable to achieve and mathematically be profitable.
1:5 RR means you’ll lose most trades but win big occasionally, so win rate stays low (~20–30%).
Using smart money setups (liquidity sweeps, breakouts) helps catch those big moves.
Profit only shows over a large sample + strict risk control + patience through losses.