I would like to challenge the dogma of having a high risk reward ratio. Is this really necessary to be a profitable trader? I've been trading live for almost a year and a half now, and I've only just begun to be consistently profitable when I stopped trying to "let my winners ride" so that I could acheive a risk reward ratio of say 3:1 for example. All I really managed to do was give most of my profits back to the market. I don't have a problem cutting my losses short, as I've seen that the vast majority of my profitable trades are in profit right away. I've never felt the need to hold on to a losing trade hoping the market will come back, so getting out of a losing has never been an issue. I don't believe a trader is giving in to fear if he or she chooses to take a profit almost right away. In fact it seems that the further price moves away from entry, the less likely you will be to hit your target. This is proven by the fact that systems with smaller T/P will have a higher win % than systems with higher T/P. I don't think it's necessary to have a ratio where you risk 100 pips to gain 10, but I see no reason why something closer to 1:1 would not work on a regular basis.
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