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For this particular trade, I am going to be testing a 2/1 rrr. In the past, I think I have made the mistake of having too high a rrr. Therefore, I failed to reach my targets in a reasonable time causing me to have to hodl through volatility. I want to make my trades highly probable, highly reliable, and fairly quick for a swing (in and out within a week or two). To accomplish this, I have to tame the greed down and shoot for more conservative targets. In this case, we’re aiming for a small profit of 18%. By doing so, we’re able to increase all factors that enable us to win this trade, bringing the odds much more to our favor! So, let’s get to it:
