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Originally Posted by kolachi
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When we place a trade, we have maximum risk reward ratio available to us, which means we have hundred per cent cross sectional area of pyramid.When trade reaches 50% of the target then our risk reward ratio for a new trade at this point is reduced to half.And at the target itself there is no question of taking a new trade.
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Hi, maybe I dont understand something - but risk to reward is calculated before enternig a trade and it could not be changed during the trade.
During the trade can only be changed risk and only if a SL is moved to new level. For example risk of loss is reduced to zero at breakeven, risk of not reaching a certain target is zero if we move SL to that level.
So we have here three different ideas; risk to reward, risk of loss, risk of not reaching target. Could you explain which one you are talking about?
Thanks for reading
