RISK TO REWARD GUIDE

When teaching how to manually trade, use the Prodigy Indicator, or use Prodigy Automation, I recommend a minimum of 1:2 risk-to-reward. The reason for this is that for far too long, people lose trades, whether it's 10 trades in a row or just 2. They rethink their strategy instead of understanding that while you can’t control your entry, you can control the risk-to-reward ratio and the risk per trade. Using this calculator helps you see, in the long term, what you can make by sticking to the plan based on your risk-to-reward and risk per trade.

Using the calculator is simple:

• Risk-to-Reward: This is your target profit. For example, a 1:2 ratio means you’re aiming for twice the profit of your risk. If your stop loss is 30 pips, your take profit would be 60 pips. If your stop loss is 40 pips, the take profit would be 80 pips. If you put 3 in the calculator, your take profit would be 120 pips, three times the profit.

• Risk per Trade: This determines how much money you want to risk per trade.

• Account Balance: This is your starting balance.

• Number of Trades: This is the number of trades for those results. For example, if Prodigy Automation took 10 trades, this will calculate the result.

It depends. I stick to a minimum of 1:2, but if you’re okay with losing more often, knowing you’ll likely make more in the long run, I personally prefer 1:3. Understand, though, that the higher the risk-to-reward, the harder it is to hit take profit.

Many people aim for 1:1 because they win more often (e.g., 30 pips risk for a 30-pip take profit). But if you input 1:1 in the calculator, you’ll see you need to win 60% of the time to have decent profits. With 1:2, you only need a 40% win rate, and with 1:3, you only need a 30% win rate.

Personally, I recommend 1:2 to start. Once you’re comfortable, you can try 1:3 because the Prodigy Indicator hits 1:3 very often. If you’re using a demo account, I suggest using both risk-to-reward ratios on two different accounts. That way, when you take a trade, you can use 1:2 on one account and 1:3 on the other, then compare the results over a few months to see which you prefer.

I suggest starting with 1:2 personally.

Yes, the Trade Manager can automatically set your take profit for 1:2 or 1:3. It can even lock in profits on your behalf.