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Risk Reward 1:3 Trading Strategy

Risk Reward 1:3 Trading Strategy, using the USDJPY off the 4 hour timeframe.

Looking for a forex trading strategy that gives you good risk reward. Then look no further, this strategy that I’m about to show you gives you a risk reward of 1:3

Last year alone in 2014, this strategy produced over 80% profit. Check out the statements below for 2013 – 2014 (2 Years) and 2014 alone. Trading off a 10k account.

To prove that you need NO trading indicators on your chart or in your trading, and by just adopting effective money management trading principles you can end up with a very profitable trading strategy.

Why you can lose 75% of the time with a risk reward strategy of 1:3

Now that we understand the concept of risk reward ratios, let’s have a look at how positive risk reward ratios can really start to make you shine as a trader. Remember, positive risk reward ratios mean that you are aiming for more than you risk every time you place a trade. Positive risk reward means more return on your investment; the advantage here is that you can afford to take stop loss hits more than you think. In fact, it’s possible to lose more than ? your trades and still turn over a profit if you have the correct risk reward. This is because your winning trades make up for any losing trades you may have accumulated, plus the leftover profit on top. So even with losing trades you can still build up your equity curve, not like the scalper who uses negative risk reward profiles, whereas losing trades set the scalper back significantly.

Losing trades hardly create a dent in a trader’s account that uses a positive risk reward; the higher the risk reward profile, the more trades a trader can afford to lose without taking a hit.