This pair is bullish on HTF and since it retraced on an area of interest, we can take a buy trade for its continuation up. If we are wrong, that's fine. We just make sure we risk 1% of our capital and still aim for a higher Risk-reward ratio trade so in the long run we still profit even with a 50% win rate.
Trade closed: stop reached:
SL hit. Not end of the world. We can have 5 losing trades at 1R each or 1% then we be down 5% but if we get at least 2 winning trades at 5% each then we get total of 10% win or 10R minus 5% on the 5 losing trades. Then we'd still be up overall by 5R.