On the contrary, if we execute a reversal transaction (commonly known as bottom-fishing), the probability of the market reversing after we enter the market is very low, so our trading success rate is usually not too high.
However, once the market reverses successfully, with the start of a new round of trends, the profit space left for us is also very large. At this time, we usually need to choose a larger profit-loss ratio, such as 3:1 or 5:1. In this case, although our trading success rate is relatively low, we can still rely on a larger absolute value of profit to maintain long-term positive income.
In short, the profit-loss ratio needs to be flexibly adjusted according to the type of trading strategy.
Finally, I would like to mention one more point: when setting the profit-loss ratio, please do what you can and choose the profit-loss ratio that suits you best. Don't blindly follow others. Only the trading strategy that suits you is the best trading strategy.
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