200 pip stop loss - 10 pip profit?

[bambang]

Do you think it would be wise to trade with the strategy that has 10 pips target and stop loss be set at 200 pips. I think this strategy one can take advantage of forex up and down and may make profit many times before there triggering stop loss as probability of stop loss triggering is 1/20th of hitting target.

I think it unwise strategy, because in order to recoup losses that only once we need to profit ten times.
means to be able to get profit we have to take profit 21 times, if we had one loss, we can only 10 pips.
for this system, you must have a very good strategy. and you should do cutt loss before it reaches the stop loss.

[lgarhboularbah]

not bad.. i think that we should take care for the lot size when trade with this strategy , well the percentage of the 10pt is low than the 200pt so we can make a lot of deal win but we should always calculate for the stop loss

[siddesh]

Very clever mind. The movement of 10 pips up is easy and you could achieve your target easily. But doing this you also have great analysis. Sometimes it may also happens the market go totally go against you and rapidly moves to Stop loss ( but it will happens rarely , you can also have alternative plans for this).

[siddesh]

I like it very much, we van do it if our analysis is correct and we are trading in the favor of trend. I will never suggest this style of trading in the opposite direction to current trend because then there will be more chance that our SL will be hit, but in the current trend it is a very good style to trade.

[rosalia]

I do not recommend 30 pips stop loss in any case because i think we should be more realastic to do the well tradings with stop loss. if stop loss will be short then it will hit first and it is better that stop loss should be more than 50 pips.

I don't think so. It's depending on what style of trader you are, it's okay to set 30 pips of Stop Loss if you are news
trader. I don't quite like to set Stop Loss in price more than 50 pips, it's too risky and it's only suitable for long-term
trader. I set at most 40 pips of Stop Loss as day trader.

[oscar]

get 10 pips profit with risk 200 pips is very uneven ..
trading account would be very risky to get a lot of loss if we consistently do this ..
better to do cutloss manual if you have to take a 10 pips profit target

[raka999]

for TP 10 pips, I recommend installing a maximum of 30 pips SL. if 200 pips, so unreasonable. better not to use SL. what if we touched SL? we must restore our loss as much as 20 times the OP ...

[balakalimuthu]

I have a strategy for trading system which provide 1:3 ratio of profit and stop-loss. But I prefer to go with this strategy because of the winning hit ratio. Same way, if you have confident on your system then you can go with it only if your system provide you 1:40 success hit ratio.

[ishvara]

Do you think it would be wise to trade with the strategy that has 10 pips target and stop loss be set at 200 pips. I think this strategy one can take advantage of forex up and down and may make profit many times before there triggering stop loss as probability of stop loss triggering is 1/20th of hitting target.

That is a very stupid market order, how can a forex exchange trader target just 10 pips and then they plan to risk 200 pips. That would lead to a margin call easily for the forex exchange trader.

[scorpian7]

I dont think this strategy will work becouse out of almost 70 tries if you win on 69 and only loose on 1, you will be on break even. so better not to try this strategy.