Understand the Problem
The image presents a risk management strategy for trading, detailing aspects such as total capital, daily loss percentage, position sizing, and potential profit or loss over specific timeframes. It also outlines a risk/reward ratio and expected returns following the strategy.
Answer
Risk management strategy for 30% return.
The strategy suggests using 50% of capital, targeting a risk/reward ratio of 1:3 with a fixed daily loss limit, yielding a 30% return over 30 days.
Answer for screen readers
The strategy suggests using 50% of capital, targeting a risk/reward ratio of 1:3 with a fixed daily loss limit, yielding a 30% return over 30 days.
More Information
The strategy involves trading with half of the total capital and maintaining a limit on daily losses to sustainably achieve positive returns. It illustrates a practical approach to risk management by balancing potential losses with gains.
Tips
A common mistake is not accurately maintaining the specified risk/reward ratio, which could affect overall returns.
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