Breakeven plus partials: what's your combination?

A popular structure: move to breakeven at 1R, take half at 2R, trail the rest. Each piece has its own cost and benefit, and the combination needs testing as a whole.

Breakeven plus partials: what's your combination? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your structure?

  • the points where you move stops and take profit
  • how the combination changed your results
  • the piece you'd remove or adjust
Breakeven plus partials: what's your combination? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The risk-reward guide shows how to evaluate the combo.

Background: Risk-reward ratio, win rate and expectancy: the maths behind a trading edge

A high win rate can still lose money. See how win rate and risk-reward combine into expectancy, with break-even win rates and worked examples.

What is a good risk-reward ratio in forex?

There isn't one right ratio. What matters is expectancy, the win rate and ratio together. A 1:2 ratio breaks even at about 33% winners before costs, while a 1:1 ratio needs 50%.

How do you calculate trading expectancy?

Multiply the win rate by the average win and subtract the loss rate multiplied by the average loss. Measuring wins and losses in multiples of the amount risked (R) makes the result easy to compare.

Read the full guide

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…