Stop Loss and Take Profit...

[DooMGuarD]

how the better...

 

short SL and long TP

 

or

 

Sort TP and lont SL

 

:)

[⭐ megashop]

the better is when your trade is end up with profit, short/long SL is nothing when u always get SL :D

[DooMGuarD]

well then thik different

 

1 TP = 2 SL

or

2 TP = 1 SL

or

1 TP = 1 SL

 

and now how i make a decision?

[soundfx]

DooMGuard,

 

It all depends on the system/method you are trading and the timeframe.

 

As a general rule when scalping on lower timeframes (1m, 5m, 15m for example) then 1:1 is about the best risk:reward you're going to get because there's a limited amount of pips available per signal at those levels. For most scalping systems expect the stop to be twice the target - which means that your signals need to be very accurate.

 

Longer term (e.g. 1h, 4h and Daily) then you have the flexibility to get a much better risk:reward and this is one of the main reasons new traders are advised to follow longer term systems.

 

The beauty of having excellent risk:reward means that your trading doesn't need to that accurate. For example - consider that each trade you place on say a 4H chart, has TP = 3 times SL. Let's assume that that stops and targets are fixed at stop 50 pips and target 150 pips and look at 10 sample trades:

 

1. Lose 50

2. Win 150

3. Lose 50

4. Lose 50

5. Lose 50

6. Win 150

7. Lose 50

8. Lose 50

9. Win 150

10. Lose 50

 

Here you've won 3 trades out of 10, so your accuracy is a mere 30% - however your net result is that you're 100 pips in profit!

 

My advice when setting stops would be to set them at the most recent swing highs and lows on the chart you're trading - and then determine your targets from your stops, according to the risk:reward ratio you're willing to accept.

 

If you always set stops at say 60 pips on a 1H GBPUSD chart, this could work out well under certain market conditions, however if those conditions change and price starts to make bigger movements your stops will be blown all over the place. This is why it's better to use swing highs and swing lows which are good price action indicators. If the most recent swing highs are lows are broken then generally speaking you can be pretty sure that your trade was totally in the wrong direction and you need to get out before too much damage is done.

[DooMGuarD]

agree...

 

but my question is...

is soft 30 pips

is hard 90 pips

 

when talk about win, but in loseit is on the contrary, is most times

sorry the market has the bad custom to go against our positions

 

:)

[Diesel 10]

DooMGuard,

 

It all depends on the system/method you are trading and the timeframe.

 

As a general rule when scalping on lower timeframes (1m, 5m, 15m for example) then 1:1 is about the best risk:reward you're going to get because there's a limited amount of pips available per signal at those levels. For most scalping systems expect the stop to be twice the target - which means that your signals need to be very accurate.

 

Longer term (e.g. 1h, 4h and Daily) then you have the flexibility to get a much better risk:reward and this is one of the main reasons new traders are advised to follow longer term systems.

 

The beauty of having excellent risk:reward means that your trading doesn't need to that accurate. For example - consider that each trade you place on say a 4H chart, has TP = 3 times SL. Let's assume that that stops and targets are fixed at stop 50 pips and target 150 pips and look at 10 sample trades:

 

1. Lose 50

2. Win 150

3. Lose 50

4. Lose 50

5. Lose 50

6. Win 150

7. Lose 50

8. Lose 50

9. Win 150

10. Lose 50

 

Here you've won 3 trades out of 10, so your accuracy is a mere 30% - however your net result is that you're 100 pips in profit!

 

My advice when setting stops would be to set them at the most recent swing highs and lows on the chart you're trading - and then determine your targets from your stops, according to the risk:reward ratio you're willing to accept.

 

If you always set stops at say 60 pips on a 1H GBPUSD chart, this could work out well under certain market conditions, however if those conditions change and price starts to make bigger movements your stops will be blown all over the place. This is why it's better to use swing highs and swing lows which are good price action indicators. If the most recent swing highs are lows are broken then generally speaking you can be pretty sure that your trade was totally in the wrong direction and you need to get out before too much damage is done.

 

I would agree with this "Sound" advise.

[mynameisandhy]

according to me, it's better using reward ratio 1 : 2 = SL : TP, but I have make sure that I have trading system accuracy more than 50% :)

[FXiGoR]

.........................................................................

[WmWm]

according to me, it's better using reward ratio 1 : 2 = SL : TP, but I have make sure that I have trading system accuracy more than 50% :)

 

I agree it has sense when u get 50% and more

[srini]

Always take profit is (high-low)*0.5 of prior entry bar in case of normal barsize and incase of long bars take the prior bar's (high-low)/3 or (high-low)*0.33

[mynameisandhy]

For latest Forex trends check this http://ultimatesignals.com/members/go.php?r=38&i=l0

 

hello brother,

 

what do you mean about the website?

[Marlin30]

That is an encouraging approach that you should think of profit and then make it by trying instead of loosing. No matter if in the beginning you make less. You would be knowing the tacts meanwhile!!

Apartments in Tucson

Edited March 19, 2011 by Marlin30

[yoseph]

the better is when your trade is end up with profit, short/long SL is nothing when u always get SL :D

ha-ha)) smart, easy and has it's point )