Trader Shift to1:1 Risk-Reward Amid Stop-Out Frustration: Insights from Reddit and Research
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A Reddit post (r/Daytrading) by a frustrated trader highlights repeated stop-outs on2+ R trades, leading to a switch to1:1 risk-reward [9]. Key comments:
- Criticism of wide stops (30 points on ES) making 2R unrealistic; advice to scale out and move stops to entry [9].
- Recommendations for trailing stops or breakeven exits once profitable [9].
- Critique of rigid R:R—traders should adapt to market structure instead [9].
- Warnings about poor entry quality (shorting momentum, mid-auction trades) [9].
Research reveals an inverse R:R-win rate relationship:1:1 requires51% win rate (easier to achieve) vs.34% for 2:1 (psychologically harder) [3][4]. Common stop-out causes: stop placement (too close, key zones), lack of confirmation [5][7]. Solutions:
- ATR-based stops (2x ATR from entry) to account for volatility [5][7].
- Dynamic stop multipliers adapting to market conditions [5].
- Position sizing formula: (Account × Risk%) ÷ (Entry-Stop) [4].
- Volume confirmation (150-200% avg) to avoid false breakouts [7].
Reddit advice aligns with research: adaptive strategies (scaling out, trailing stops) address rigid R:R flaws [8][9]. Poor stop placement (a top research issue) echoes Reddit comments about wide stops [5][9].
- Risks:1:1 R may limit profit per trade if consistency is lacking [3].
- Opportunities: Combining1:1 with adaptive tactics balances consistency and returns [8][9].
Insights are generated using AI models and historical data for informational purposes only. They do not constitute investment advice or recommendations. Past performance is not indicative of future results.
About us: Ginlix AI is the AI Investment Copilot powered by real data, bridging advanced AI with professional financial databases to provide verifiable, truth-based answers. Please use the chat box below to ask any financial question.
