Risk to reward ratio
Risk : reward
You can win only four trades out of ten and still make money. Here is how.
1 : 2 risk reward
| Risk | $10 per trade |
| Reward | $20 per trade |
| 4 wins, 6 losses | +$80 - $60 = +$20 |
If you risk ten dollars to make twenty, four wins and six losses still leave you twenty dollars up.
Risk : reward on gold
Example: a stop 1.5x the ATR away from the entry (beyond normal noise) and a target twice that distance - a 1:2 risk to reward.
Quick quiz: Risk 50 pips, target 150 pips. Ratio?
- A: 1:2
- B: 1:3
Answer under the YouTube lesson - we read every comment.
Learn it, then trade it with signals.
GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
Trading involves risk. Lessons are for education, not financial advice.