Trader Shift to1:1 Risk-Reward Amid Stop-Out Frustration: Insights from Reddit and Research

A Reddit post (r/Daytrading) by a frustrated trader highlights repeated stop-outs on2+ R trades, leading to a switch to1:1 risk-reward [9]. Key comments:
- Criticism of wide stops (30 points on ES) making 2R unrealistic; advice to scale out and move stops to entry [9].
- Recommendations for trailing stops or breakeven exits once profitable [9].
- Critique of rigid R:R—traders should adapt to market structure instead [9].
- Warnings about poor entry quality (shorting momentum, mid-auction trades) [9].
Research reveals an inverse R:R-win rate relationship:1:1 requires51% win rate (easier to achieve) vs.34% for 2:1 (psychologically harder) [3][4]. Common stop-out causes: stop placement (too close, key zones), lack of confirmation [5][7]. Solutions:
- ATR-based stops (2x ATR from entry) to account for volatility [5][7].
- Dynamic stop multipliers adapting to market conditions [5].
- Position sizing formula: (Account × Risk%) ÷ (Entry-Stop) [4].
- Volume confirmation (150-200% avg) to avoid false breakouts [7].
Reddit advice aligns with research: adaptive strategies (scaling out, trailing stops) address rigid R:R flaws [8][9]. Poor stop placement (a top research issue) echoes Reddit comments about wide stops [5][9].
- Risks:1:1 R may limit profit per trade if consistency is lacking [3].
- Opportunities: Combining1:1 with adaptive tactics balances consistency and returns [8][9].
Insights are generated using AI models and historical data for informational purposes only. They do not constitute investment advice or recommendations. Past performance is not indicative of future results.
