Kardex Trader explains how oversized stop-losses destroy your risk-reward ratio, turning a 1:10 edge into 1:2 through repeated stops. Wait for clear out-of-balance conditions instead, and you can raise your win rate by 20 to 30 percent.
This is exactly the building point of the model that I use. If the same pattern is presented in this area, it's a completely different situation. AMT is the real nature of the market. It goes from balanced area to imbalance. Market is not usually in balance, is usually imbalanced. Yeah, so that's the reason why traders that start take 3x stop loss, because they try to get the last spring before the move up. And you notice that this 1:10 becomes a 1:2 because you take 4 stops to try to do it. Now, if you do this simple change and you wait for the market to get to a condition of out of balance, your win rate will jump up by at least 20 to 30%.
