Risk management strategy
Last updated
Last updated
Position fixation is recommended when the risk-to-reward ratio (RR) reaches 1:3 - 1:5. It is also possible to split the position, with the second part being fixed at more global levels. We recommend closing a portion of the position when local levels are reached. Additionally, when the RR reaches 1:1, it is recommended to move the stop loss to breakeven.
Risk management is what can save your trading deposit from your mistakes or unusual market behavior. Even if your trading win rate is not high enough, in the long run, you still have the opportunity to remain a profitable trader. Here's an example in the picture below.