Successful traders start with 1:1.5 to 1:2 risk-to-reward ratios, then sell half at the first local low and move their stop to breakeven. The other half rides the trend for 1:5 to 1:10 gains by targeting zones of stacked liquidity lows that clear in a single session.
my trading personally, that has helped me more than anything. And normally when I'm trading, I go for a 1:1.5, 1:2, and I let my runners go from 1:5, 1:10R trades. My initial position, I always trim at the local lows. Do you have a fixed amount that you trim? I always trim half. Always, always, always. So let's say I have 4 contracts here. The market moves down in my favor. I take 2 off. I move my stop loss at breakeven. So this stop goes right here. Now I'm risk-free. What happens is if you're trading off of such a higher time frame move, you can actually catch a continuation. Usually when we have these type of moves, we create a lot of low resistance. Sense liquidity. So when I see something like this, I mark it out just like this on my chart. I say when the move starts for the downside, all these lows that are stacked are going to get taken out together in one single session. That's exactly what happens. And that's when our trade usually ends up as a 1:5 or 1:10 or even larger than that.
