Measuring and trade planning
Long and short position (risk/reward)
Plans a trade: entry, stop-loss and take-profit levels, with the risk/reward ratio worked out for you.
La idea en pocas palabras
Before a trade, decide where you are wrong (stop) and where you take profit (target). If the possible gain is at least twice the possible loss, you can be wrong more often than right and still come out ahead over many trades.
Cómo se calcula
Click the entry. Drag the target and stop handles to your levels and the right edge to your time horizon.
Risk = |entry − stop|
Reward = |target − entry|
Risk/reward = 1 : (reward ÷ risk)Cómo usarlo
- Look for setups with reward at least 2× the risk.
- Work out position size from the risk: money you accept to lose ÷ risk per unit.
Sacar conclusiones
- A 1 : 3 trade needs to win only a little over one time in four to break even (ignoring costs).
Ejemplo
Long EURUSD at 1.0850, stop 1.0820 (risk 30 pips), target 1.0940 (reward 90 pips): risk/reward 1 : 3.
Los precios de los ejemplos son ilustrativos.
Ten cuidado con
- The plan is only as good as your discipline in following it.
- Costs (spread, commissions) reduce the real reward.
Un poco de historia
Risk/reward planning is a basic rule of trading risk management.
Solo contenido educativo. Ningún indicador ni patrón predice el futuro, y nada de lo aquí expuesto es asesoramiento de inversión.