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This strategy helped me reach financial freedom.

Advanced Trading: a full ARTICLE🧵

Ratio Optimisation Strategy

Use this to;

-Improve Risk: Reward Ratio

-Decrease the size of losing trades

I'll even give you a new PDF at the end of the ARTICLE.

In trading, your Risk: Reward is key to long-term success

Because big wins and small losses maximize profitability.

Ratio optimization helps you achieve this.

Start here:

1. Data collection

Collect data on how far into your invalidation area an average winning trade goes.

For example:

"An average winning trade only ever goes 60% into my stop loss area and the other 40% remains untouched."

This lets you figure out;

-How much of your stop loss area is being "wasted"
-How tight can you make your stops

You need this to cut losers quickly and make the winners larger.

2. Surface Area

Goal: Shrink the invalidation area of your stop loss to improve Risk: Reward

-Start with a small adjustment (for example: -0.1R)
-Take another 30-100 trades
-Then tighten it more and repeat



Note: Make sure each adjustment is always based on the data you collect

This will automatically increase the size of your winning trades

Because your stop loss area will be reduced in size.

It will look something like this:

3. Repetition

Repeat this process until you can't decrease the stop loss area anymore.

This will improve your Risk: Reward by a lot over time.

You will also cut your losing trades quicker by having tighter stop losses.

To go one step further,

Reverse engineer this strategy to increase your winners.

By increasing the reward side of your trades even more

You'll never leave profits on the table again.

To go one step further,

Reverse engineer this strategy to increase your winners.

By increasing the reward side of your trades even more

You'll never leave profits on the table again.

If you like Ratio Optimisation, you'll love my Tracking Optimisation PDF

This will help you create exit strategies for trending markets.

Get The PDF HERE: http://u.pc.cd/JLJ7

That's it for today folks,

Thanks for reading! For more insightful crypto content,

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