If you’re trading with the Sonic System, one of the most important habits to develop is respecting your risk-to-reward ratio. This simple concept can be the difference between steady growth and slowly draining your account—even if you’re winning trades here and there.

Aim for 50/50 or Better

Your risk-to-reward should ideally be 1:1 (50/50) or better. That means if you’re risking 10 ticks, your target should be at least 10 ticks—or more.

That’s a solid foundation.

It’s okay if you’re risking slightly more than your target, like 11 ticks risk for 10 ticks reward. But the problem starts when the ratio is heavily skewed—like risking 20 ticks to make 5. That’s not sustainable.

What Bad Risk Looks Like

Let’s say you enter a trade and your stop is twice the size of your profit target. You’re putting yourself in a position where one loss wipes out two or three wins. That’s exactly what we want to avoid.

These types of setups don’t align with the principles of the Sonic System, and they’ll chip away at your confidence and your capital.

Using ATR the Smart Way

A great way to set stop losses and targets is with the ATR (Average True Range). Here’s a practical setup:

• Stop Loss: 0.9 to 1.0 × ATR
• Target: 1.0 to 1.5 × ATR

This gives your trade enough room to breathe without being too loose or unrealistic. Going for something like 10× ATR? You’ll almost never hit your target.

How Winning Trades Behave

In most cases, good trades go in your favor right away. That’s a pattern we’ve seen again and again.

If your trade stalls or moves sideways immediately after entering—or worse, moves against you—that’s a red flag. It might still work out, but odds are decreasing. If you can cut those early, especially near breakeven, you’ll protect your profits over time.

Don’t Overtrade

One of the most common mistakes? Giving back gains after a strong morning session because you keep trading into the afternoon. Just because the market is open doesn’t mean you have to keep trading.

Pick your spots. Fewer, higher-quality trades win the long game.

Final Takeaway

If you’re serious about trading with the Sonic System:

• Stick to 1:1 or better risk-to-reward.
• Use ATR to set realistic stops and targets.
• Watch how trades behave early—cut the laggards.
• Limit the number of trades per day.

These small adjustments can lead to major improvements in your consistency.

Ready to take the next step?

👉 Visit DayTradeToWin.com and sign up for a free member account. You’ll get trial access to tools like the ABC software and learn price-action methods that go beyond conventional indicators.

Let’s trade smarter—together.