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Risk Management

When trading the Harmonic Patterns, proper risk management is essential for successful trading. Here are the key aspects to consider:

Position Sizing​

The indicator calculates the optimal position size based on:

  • Your account balance
  • Your account risk percentage
  • The distance between entry and stop loss

Just go to the settings of the indicator and scroll down to the section "Risk Management".

Here you can enter your Account Size and how much of it you want to Risk when opening a position after a pattern breakout.

Risk Management

Risk/Reward Ratio​

The pattern provides three take-profit levels (TP1, TP2, TP3), with the risk/reward ratio (R) calculated based on TP1. This helps ensure that each trade has a favorable risk-to-reward setup.

tip

Use our built-in Risk Management feature to optimize your trade. The indicator will automatically calculate the optimal position size and risk parameters based on your account settings.