Originally Posted by
dhita
when I open a position I place my stop loss based on the closest support or hold or high or low from the previous candle. so I don't get a fixed risk. if you are going to risk 100 pips for 10 pip targets at the end you will be more loose. the recommended risk management rule is at least 1: 2. that means when you take a risk your target must be at least 2. your profit target must be double your stop loss. and I think all traders mess up different strategies and it's smooth. so if someone uses that strategy, maybe it is a mechanism that has been coordinated with the nature of the trader itself. but if this is my trade, I will try 25 pips and place 100 pips.