Hubert Senters here. Let’s have a discussion about what is an acceptable risk to you may be entirely different than what is an acceptable risk to me and vice versa. So if you don’t know what your acceptable risk on each individual trade is you are at a huge disadvantage. So I’d like to automate as much as I possibly can. So I usually have Mark create some really cool indicators or something like that and it makes my job a lot easier. So if you can see here, this right here so if I’m thinking about going long or short, it didn’t really matter in this example this will be a short and it’s saying the ATR risk for this trade is $1.06. That’s perfect. That’s well within my risk profile because I know if I get it right I’m going to target $1, target $2 and then cover. And then you can see I got a $10.4 X on that trade so from my entry all the way up to here the amount of risk that I took was $1.06 on my ATR scale and the amount of profit that I could have potentially made was $10.4 all day long risk going to make $10 all day long, every day that it ends in a while. Now, if I take another example I’m just going back here and search a little bit. See if I can find a bad one, there’s $0.77, $0.62, $0.52, those are all acceptable. $0.51, I’m trying to find one that’s bad. Usually – oh, here’s one. I wouldn’t per say take this one. I don’t like when the ATR gets above $2 so $2.12. It’s not terrible but I like to keep them below $2. I’m trying to find one that’s really high so that I can show you points $0.6, $0.77. I may have to grab another equity real quick. There’s $1.48. There’s $1.22. So Nvidia is a bad example because most of them fit my risk profile. So let me throw another chart up here really. So here’s a couple more examples. This is Amazon on a 10 minute timeframe and I’ve got two back to back. We have actually more than that $1.0 that’s $1 point. So $2.45, $2.26 too high for me. I’d like to keep it below $1 not below $1 below $2. So the rest of these you can see and then starts getting a little crazy like even leave the care $4 point X, $4 X is not too bad. And then these are all acceptable $0.89 that’s not too bad. And you can see boom there are $6 X trade, so very important. The theme of this video is you have to know what is an acceptable risk for you per trade, if you don’t I mean you’re just stolen at the beginning against the long some of it’s going to stick. It’s a real crappy way to trade and it’s going to get you. It’s not going to make you last long in the industry, it’s probably going to make you blow up. Look here’s a $30 X. So if you took this risk reward ratio of $0.47 ATR’s which is very low, you had a $30 X return on that trade. That’s a good reward ratio, very important if you don’t know what your risk reward trade is on every single trade when you go calculate that so you don’t take some crappy trades. Good luck. Hope it helps. And I’ll see you on the next video. Hubert.