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The Forex Trading Manual: The Rules-Based Approach to Making Money Trading Currencies by Javier Paz

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CHAPTER 11Maximizing Profitable Trades

I saved this important lesson for the end. So far, I have taught you the optimal conditions for using the VT Pivot Roadmap strategy and how to gain approximately 40 pips per trade while risking up to 30 pips. If you follow the rules strictly as I outline them, I strongly believe that a 65 to 70 percent trade win ratio can be within your reach in as little as a few months.

Let’s say you want to know how it is that you can reach your profit goal despite having losses of 30 pips 30 percent of the time. I will use as an example a situation in which you placed 20 trades per month, or roughly one trade per day. Using the ratios described earlier, you would have 6 losing trades out of 20, equivalent to –180 pips ...

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