No doubt that risk management is very important in a trading and that you can not success without in a trading. But, regarding the R:R ive got some questions.
Let's say your R:R is 1:3, and you start trading, and what if trade doesn't go in your favor? You cannot close it 3 times bigger than your loss, for example; its impossible for it to go more than 1.5% up for your profit. Then all of the 1:3 R:R theory falls into the water? Or what? Can someone explain it better?
Thats the number which you are sticking to or may be thats the ratio you have decided by yourself and I guess you need to come out of it first and then you can decided another strategy so that you will have good profits back to you. You simply start a trade first and depending upon the coin which you are trading you should put up 5-10% loss as lowest limits of bottom and also keep upto 5% of profits to take up so that you can quickly gain and close the trade. The loss is set to bigger limit because truly speaking you need to give your trade a time and it may happen that before it goes that far down it may just come up very fast and profit you more. So you have to keep changing your % stop loss likewise to have higher success rate.