MoneyManagement is about having control of moneyflow to and from your account, loosing as little money as possible.
There is multiple ways of doing that. One of them could be the ratio 2:1
Very simple. If you win, you will win 2 and if you loose, you will lose 1.
Lets say you do 100 trades with TP $2 and SL $1 (only theory, no spreads etc.)
Out of these 100 trades lets say
you lose 60 trades of $1 = $60
you win 40 trades of $2 = $80
Even with this bad win ratio you still cash in $20
BreakEven with win ratio at only 34%.
But there is also the real world.
Below screenshoots of a test during 3-4 days
I used the InDx indicator with the settings M15 M30 H1.
TP and SL I used the ADR with ratio 2:1.
Problem is when the trend turn around, the InDx is to slow to realise it
and make many wrong trades. A better indicator or settings will do it, and minimize losing I think.
Keep on testing
There is multiple ways of doing that. One of them could be the ratio 2:1
Very simple. If you win, you will win 2 and if you loose, you will lose 1.
Lets say you do 100 trades with TP $2 and SL $1 (only theory, no spreads etc.)
Out of these 100 trades lets say
you lose 60 trades of $1 = $60
you win 40 trades of $2 = $80
Even with this bad win ratio you still cash in $20
BreakEven with win ratio at only 34%.
But there is also the real world.
Below screenshoots of a test during 3-4 days
I used the InDx indicator with the settings M15 M30 H1.
TP and SL I used the ADR with ratio 2:1.
Problem is when the trend turn around, the InDx is to slow to realise it
and make many wrong trades. A better indicator or settings will do it, and minimize losing I think.
Keep on testing
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