With a RR (Risk Reward ratio) of around 4 I enter a trade. What does it mean? That my take profit needs to be 4 times my stop. If my stop makes me lose 3% I want my TP at around 12%. Of course some days it will be more. Some days I’ll exit sooner and it will be less.
Does this mean I need a 12% move? No, there is leverage to speed things up.