Riskmanagment
Higher RRR, the higher the chances of profit & consecutive lossLower RRR = Low drawdowns (Lower consecutive losers)
Higher RRR = High drawdowns (Higher consecutive losers)
To not go against the prop firm's drawdown rule of > 10% rule, You should risk..
risk per trade = 10/consecutive loser
Example.
risk per trade = 10/7 = 1.4285%
So you should risk < 1.4285% per trade.
REACTING TO THE ECONOMIC NEWS ON ETH 05/05/2021Yesterday was a wild day for Crypto, Stock and Indices (this gave us intraday traders an exciting day)
A half-point interest rate hike by the Federal Reserve, the largest hike since 2000, which was done in an attempt to corral record high inflation.
ETH failed to reclaim back the $3000 mark and we had a picturesque Supply Pattern.
Stop loss = 1% Risk
Take Profit = 5.6% Reward
R/R = 5.60/1
Due to the High Volatility we scaled to the 15m to action this trade.
Hope you enjoy this trade idea.