One strategy or many: how many setups do you trade?

One setup, mastered, usually beats three, half-learned — but one setup also leaves you flat for long stretches. The balance between focus and diversification is personal and rarely deliberate.

One strategy or many: how many setups do you trade? — risk-reward diagram
A risk-reward ratio of 1 to 2

How many do you run?

  • the setups you trade and how they differ
  • how you know which one to use when
  • whether adding setups ever helped or just diluted
One strategy or many: how many setups do you trade? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The expectancy guide argues for knowing each setup's real numbers.

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