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How to Create a Rule for Number of Trades in a Day While Maintaining Risk-Reward Balance?
Hey everyone, I’m a day trader who primarily trades options using a 1-minute candle scalping strategy with a 1:3 risk-reward ratio. Lately, I’ve been facing a dilemma about setting a fixed number of trades per day. Here’s my issue: • Some days, I hit my profit target on the first trade. • Other days, it happens on the second or third trade. • If I set a rule to stop after “n” trades (say 3 trades), I sometimes end the day at -3R if none of them work out. • On the flip side, the next day might start with a positive trade (+3R), but overall, I’m still at a net negative over two days. I want to develop a disciplined approach where I can limit overtrading while also maximizing the potential of my strategy. How do you guys plan your daily trading rules in similar situations? Should I limit the number of trades, set a daily loss limit, or approach this differently? Any advice or frameworks for risk management would be greatly appreciated! Thanks in advance!4
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