Forex Risk Reward Strategy

October 19, 20251 min read
Forex Risk Reward Strategy

Currency Strength Meter Team

Forex Analyst & Writer

#risk management#reward ratio#forex strategy

Introduction

Winning traders don’t just predict price — they control risk.
The currency strength meter shows where to trade; risk management ensures you live to trade tomorrow.

Practical guides are at www.currencystrengthsmeters.com.

Defining Risk–Reward

A 1:2 ratio means risking 1% to earn 2%. You can lose half your trades and still grow.
Always define risk before entry.

Risk Rules

  • Never risk more than 2% per trade.
  • Set stops behind logical structure, not arbitrary pips.
  • Avoid overlapping correlated positions.

Reward Principles

Trade strong vs. weak to maximize distance potential — this naturally improves reward ratios.

Mindset

Think in series, not trades. Consistency matters more than perfection.


Risk education by CurrencyStrengthsMeters.com — the foundation of sustainable forex success.

🔹 Key Takeaways

  • Use strength meters to spot strong/weak pairs quickly.
  • Combine with price action for accurate entries.
  • Stay aware of major economic events.

💬 Comments

Comments feature coming soon! Traders will be able to share insights and questions here.


Forex Risk Reward Strategy