The risk reward ratio of one to two one two one one two three, so on, so forth.
Yes.
So here we have an example with one to one risk reward ratio.
What I mean with that is this this year is one to one.
Win ratio, so the amount that you are willing to lose is the same with the amount that you are willing
to win one to one win ratio, what that will bring to you then then rates you.
Five loses five weeks.
Let's let's check the graph.
So we started $1 $0.2 Lombard two, $2, the one sold for minus $1 $0.
So at the end of the 10 trades, we have $0.
There is nothing.
We just waste time, nothing which is not bad.
We lost nothing.
It's fine.
And five winning in a row or five loses in a row is very often happening very, very often.
But with the better risk reward ratio with at least one two, we don't take any trade that has less
than one to rate ratio, winning rate, whatever you want to call it.
So at least one tool.
So let's say same example two two two two two one one one one one.
Perfect.
So at this point, same then trades.
But instead of winning only one dollar, we are winning $2 per trade, which reflected the graphic like
this?
We are OK.
This will be the graphic.
Two to one.
The amount that you are willing to lose or the amount that you are that you want to win is two times
higher, bigger than the amount that you are willing to lose.
OK.
So let's see what the graphics say.
We start with $2, we made six, four, six to one.
So for at the end we have five dollars, but we lost five in a row like here.
But we have a profit of $5, which is amazing.
Let's don't talk about the fact that you can go with traits which has raised racial tree on two one
three to one five to one.
I can go here.
This is six.
This is more antics.
Now we can go and say three.
Three, it's enough.
We have a tree that means three, three three three three.
$10 profit.
You can have two to two two as well.
And you can you lose virtually?
No, let's lose.
For six loses four innings at the end, we have still two dollars, we are still having profit off their
six, losing only four winnings, so you don't need to be right every time when you make a trade.
You don't you just need to be.
Maybe half of the time.
Yeah, here is not half is not even 40 percentage of the time, you're right.
Basically, that's what this table would say, the graphic.
Yeah, but let's say 50 percent with 50 percent, you are making money, you are profitable again.
Let's we can discuss about higher risk reward ratio and we can put here three or four or five depends
about the arm, which is going to bring you a lot more if you want.
If you want to be focused on risk, real racial you can have.
A risk reward for two one, let's say, just let's see, just for the example, I'm not quite sure if
he's got water, but let's see zero here, one 00 here.
You know he'll he'll walk, OK, two trades is not enough.
Two trades with the four four two one three three.
But three trades.
So having right on in 30 percent of time, it's going to bring you five out.
At the end of the day year that the 10 threats, he's got to be a fighter.
So you are profitable.
That is so very important is a risk reward ratio is the most important thing.
Don't be afraid to lose traits.
Be afraid to win trades in a row because you learn nothing.
And when the loses will hit you, you will forget about any strategy.
You will be frustrated.
Your trading world would be.
Destroyed.