If you hit SL in 7 out of 10 trades and only hit TP in 3 trades (with a 1:3 risk-reward ratio), you will still remain in overall profit.
Let’s calculate it:
(Assume you risk $10 per trade)
7 Losing Trades (SL):
7 trades × $10 loss = $70 total loss
3 Winning Trades (TP):
Since the ratio is 1:3, you will earn $30 on each winning trade ($10 risk × 3)
3 trades × $30 profit = $90 total profit
Final Result:
$90 (Profit) – $70 (Loss) = +$20 Net Profit
Disclaimer ⚠️
This content is shared for educational purposes only.
It is not financial or investment advice.