A 3:1 reward-to-risk ratio is the most ideal choice to increase the rate of winning streak, or make profit in the long run. But how does it really work?
For example: Let’s say you are a scalper and only wish to risk 3 pips. Using a 3:1 reward to risk ratio, this means you need to get 9 pips. Right off the bat, the odds are against you as you have to pay the spread.
However, in real-life situations, reward-to-risk ratios aren’t fixed but they should be adjusted based on time frame, trading environment, and your entry/exit points.
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