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Negative Risk/Reward: Hidden Edge or Hidden Danger?

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It’s a topic that sparks plenty of debate.

👉 Can a negative risk/reward ratio actually be part of a winning strategy?

Here’s our take, split between intraday trading and swing trading:

📉 Intraday Trading
☑️ Pros:
• Can work in high‑probability setups (mean‑reversion, range scalps)
• Quick targets often get hit before stops
• Stops can sit beyond liquidity grabs to protect the trade

⚠️ Cons:
• Needs a consistently high win rate
• Prone to slippage and fast spikes
• Can lead to over‑trading if discipline slips

If used, risk must always be pre‑defined — not adjusted mid‑trade.

⏳ Swing Trading
☑️ Pros:
• Occasionally helps avoid being stopped on deeper pullbacks
• Gives breathing room in trending markets

⚠️ Cons:
• Smaller targets vs bigger stops rarely pay off over time
• Lower win rate on higher timeframes makes it hard to sustain
• Exposed to news gaps & weekend risk

Overall, swing trading works best with positive R/R setups (e.g., 2:1 or higher).

☑️ Summary:
Negative R/R can work — but only if:
• The setup is statistically proven & high probability
• You keep risk strictly pre‑defined
• It fits the pair, timeframe & volatility

Most traders are better off sticking to positive R/R — but for experienced scalpers, negative R/R can be a tool rather than a trap.

💭 Do you use negative risk/reward in your strategy?
Only intraday, or do you apply it to swing trades too?

Drop your thoughts below —we're curious to hear how others approach it! 👇

Thanks again for the likes, boosts, and follows — really appreciate the support!
Trade safe and all the best for the week ahead!

BluetonaFX

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