Forex Zone - Forex Forum

Risk Reward Ratio in Forex

Discussion started on Forex Education

  • Hero Member
  • Posts: 850
  • Points: 0
  • Likes Received: 97
  • Reputation: +2/-2
From many discussions in the forum and also the tutors I get the recommended ratio is 1: 2 or at least 1: 1.
This is intended to increase the value of profits and patch losses from trading losses.
I myself agree with that because it is the ideal way. With a ratio of 1: 2.
#46 - February 10, 2020, 04:20:22 AM

  • Full Member
  • Posts: 205
  • Points: 0
  • Likes Received: 12
  • Reputation: +0/-0
Measured risk and reward then of course one of the important factors in order to survive in forex.
Risk and reward ratio of sl and tp is the ratio is 1: 3, so the potential for profit is much greater as long as it does not hit sl 3 times.
#47 - February 10, 2020, 05:33:47 AM

  • Full Member
  • Posts: 111
  • Points: 0
  • Likes Received: 10
  • Reputation: +0/-0
The theory is like that, RR 1: 1 1: 2 or 1: 3.
But in practice risk and reward is always a problem because it requires carefulness and accuracy in analyzing including in setting stop loss and also take profit. Based on the traditional system that we have
#48 - February 10, 2020, 07:00:32 AM

  • Full Member
  • Posts: 155
  • Points: 347
  • Likes Received: 4
  • Reputation: +0/-0
risk reward ratio is already widely used, but not everyone makes the same profit because there are things that can affect the arbitrary stop loss placement.
#49 - February 10, 2020, 06:10:39 PM

  • Full Member
  • Posts: 131
  • Points: 174
  • Likes Received: 2
  • Reputation: +0/-0
I know the risk reward ratio when I read a forex article that discusses it and it turns out the risk reward ratio is indeed quite important and effective to maximize profits.
#50 - February 11, 2020, 09:25:06 AM

  • Newbie
  • Posts: 25
  • Points: 0
  • Likes Received: 7
  • Reputation: +0/-0
every trader has a risk reward calculation, as long as they always apply this, trading will be safer.
#51 - February 11, 2020, 09:56:35 AM

  • Full Member
  • Posts: 151
  • Points: 178
  • Likes Received: 4
  • Reputation: +1/-1
Risk reward ratio is an interesting knowledge and indeed the RRR is one of the many risk management strategies applied to maximize profits with stop loss.
#52 - February 11, 2020, 10:09:00 AM

  • Full Member
  • Posts: 190
  • Points: 150
  • Likes Received: 18
  • Reputation: +3/-0
The use of risk and reward ratios is right and with discipline to apply it in every trade, the end result will also be maintained later to generate profits.
#53 - February 12, 2020, 12:02:43 AM

  • Full Member
  • Posts: 116
  • Points: 0
  • Likes Received: 11
  • Reputation: +0/-0
RR function is not really calculated from how much we won SL or TP. But to what extent the balance in our account can grow.
So this RR will provide security and capital development.
#54 - February 12, 2020, 04:01:13 AM

  • Full Member
  • Posts: 198
  • Points: 0
  • Likes Received: 25
  • Reputation: +1/-0
Determine the ratio if in my opinion a better loss of 2: 1 compared to a large loss ratio 2. 
However, profits will be more. 
This is based on the op conducted in trading, there is an analysis used, so that the probability of achieving the profit target will be more and more.
#55 - February 13, 2020, 04:59:44 AM

  • Newbie
  • Posts: 44
  • Points: 218
  • Likes Received: 0
  • Reputation: +0/-0
risk reward ratio is a risk management that we need to study because stop loss placement is important in MM and risk management so that we can limit losses.
#56 - February 13, 2020, 07:28:05 AM

  • Jr. Member
  • Posts: 56
  • Points: 262
  • Likes Received: 1
  • Reputation: +0/-0
risk reward ratio is very good to use when making transactions so besides the target is limited also we can maximize profit, especially if we use RRR combined with trailling stops.
#57 - February 13, 2020, 09:19:25 PM

  • Hero Member
  • Posts: 810
  • Points: 0
  • Likes Received: 120
  • Reputation: +3/-0
risk reward ratio is very good to use when making transactions so besides the target is limited also we can maximize profit, especially if we use RRR combined with trailling stops.
The combination of RR and trailing stop is very useful for higher profit levels and lower risks.
in addition RR also makes trading more planned and secure.
#58 - May 12, 2020, 09:01:55 PM

  • Sr. Member
  • Posts: 452
  • Points: 2273
  • Likes Received: 13
  • Reputation: +0/-0
risk reward ratio in forex trading is quite important considering our need for the implementation of stop loss becomes the main and important thing that must be applied in trading even it has become mandatory.
#59 - May 13, 2020, 02:47:05 AM

  • Sr. Member
  • Posts: 358
  • Points: 56105
  • Likes Received: 10
  • Reputation: +1/-1
I often apply risk reward ratio because I consider it important especially in accordance with my trading strategy that is daily trading where the risk reward ratio strategy can be applied to optimize my entry and stop loss.
#60 - May 13, 2020, 03:15:10 AM

Members:

0 Members and 1 Guest are viewing this topic.