I just wanted to share some thoughts about RRR.
Books written for the retail trader will say the RRR should be 2:1 or even 3:1. However, it is a known fact that the approximately 80 – 90% of retail traders lose all there capital within the first year of trading. So having a 3:1 RRR doesn’t help any. Here is what often happens: The market will go through a drawdown that stops out the trade, then the market will resume moving in the direction of the trend and the trader loses out on the profit from the market moving in the direction of the trend because the trade was stopped out during the drawdown.
On the other hand, the EA’s created by FSBpro are backtested to show a profit even though the RRR may be less than one to one. Here is what often happens: The market will go through a drawdown, but because the SL is set further apart from the price the trade was entered at, the trade doesn’t get stopped out. Then when the trend resumes the trader is still in the trend and the trade and because of the RRR being less than one to one the trade hits the TP sooner and the trader walks away with a win.
As a result, it is shown that having a RRR greater than one to one can hurt the trade, whereas a RRR less than one to one can help the trade.
So, I would not be concerned about the RRR.
I understand that coming from the retail trader world it can be difficult to start trusting a RRR less than one, but the reality is a RRR less than one can provide a better trade.
Also to protect your account the EA’s have a protection in that if the account loses 4.9% of the original account balance it will stop trading.