So what is the fixed profit and loss ratio thinking? Simply put, it means that each transaction sets the range of stop profit and stop loss according to a predetermined ratio.
For example, under the condition of a fixed profit and loss ratio of 2:1, the profit amount of each transaction needs to be twice the loss amount.
When the profit reaches the target, the stop profit operation must not be executed in advance. The stop profit and stop loss operations must be executed according to the prescribed profit and loss ratio. This is one of the prerequisites for us to achieve long-term stable profits.
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