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How is it possible to make money with a risk to reward ratio of 50:1 or worse?

Let me answer with another question: How many times did you get stopped out before the trade resumed in your initial direction? Stop orders are a source of liquidity and markets will move partly because of them.

In some cases, substantial moves can derive from stop clusters being devoured. This is one of the reasons I opt to close profits fast and let losers run.

How do you manage your trades without a stop loss order?

95% of the trades close in profit, so I have to manage the losses caused by 5% of the trades. These losing trades are not managed individually but as a whole. I do that by increasing and decreasing the exposure on the long and short legs.

Why do you sustain a permanent drawdown?

This is because I use a different definition of a drawdown. For me, it's not a series of losses which demand to be recovered. I see the drawdown as an implicit cost of the business, together with explicit costs such as swaps and spreads.

If you have made a 100% return on your balance, a 50% drawdown means your equity is up by 50%. In other words, if you close all trades at that moment, your ROI (return on investment) is still 50%.

I’d like to know more about your hedging strategy. How does it work?

The hedging is treated like a sub-strategy. It enables me to remain tail risk positive, safeguarding the account's performance in exceptional circumstances, like for instance during an election period. The hedging is never 100%, usually I have a bias and will increase exposure in one of the legs. In the Premium webinars I explain the technique in more details.

Do you use leverage?

Yes, I make use of leverage but each individual trade is very small compared to the account's size. Keeping the position size small enables me to construct a larger position with many trades at different price levels. In exceptional circumstances I may increase the exposure in one direction, capitalizing on a directional market movement powered with higher leverage. But I keep always enough available margin to profit from what is called the "coastline" of exchange rate fluctuations.