Do you actually follow a fixed risk–reward rule in your trading? Let’s talk about it.

Hi everyone,

I’ve been thinking about how many traders use risk–reward (RR) in practice versus in theory. A lot of content says “always aim for 1:2 or 1:3,” but I’m curious: do retail traders in Indian markets actually stick to a fixed RR rule, or do they adjust it based on the setup?

Here’s a simple framework I use for setting stop-loss and target:

* Decide the entry based on your setup (breakout, pullback, support/resistance, etc.).
* Place the stop-loss where the setup is clearly invalidated (below support, above resistance, or beyond a recent swing).
* Set the target at a logical level where price is likely to face resistance/support, not just at a random “2x” or “3x” number.
* Then check the ratio: if it’s too low for your style (for example, below 1:1.5), skip the trade or reduce size.

The key is: the market doesn’t care about your ratio. Your ratio should come from the structure, not the other way around.

This brings me to the main question: can a high win-rate, low RR strategy (for example, 60–70% win rate with 1:0.8 or 1:1) work as well as a low win-rate, high RR strategy (35–45% win rate with 1:2 or 1:3) in Indian markets?

In theory, both can be profitable if the math is positive. But in practice, factors like:

* Slippage and brokerage
* Intraday noise on indices and stocks
* Psychology of holding losers vs cutting winners

can make one style easier to follow than the other.

I’d like to hear from different types of traders here:

* Do you use a fixed RR rule (like “never take a trade below 1:2”)?
* Or do you let the setup decide and just ensure the expectancy is positive over time?
* For those running high win-rate, low RR strategies: how do you manage the stress of frequent small losses when they happen?
* For those running low win-rate, high RR strategies: how do you handle long losing streaks without losing confidence?

Especially interested in experiences from Nifty, Bank Nifty, and liquid F&O stocks. If you have a simple rule or framework you actually follow day-to-day, I’d love to hear it.