you sure this strategy is going to be profitable with those tight stops and very tight targets? You have to have a very good hit rate there is no such thing as a hit rate, although people like to talk about it you're going to be need a big trend to get you out of this mess I don't have any problem with the stops, but I have a problem with the targets It's painful to see you go through this try a risk:reward ratio of 1:infinity everytime you take a profit you make it just that much harder on yourself
My last trade had a 8 pips stop and 40 pips target. I don't need a high hit rate to make this particular setup profitable over the long run. What do you mean by 1:infinity ? You dont't take profits at all ? I think that very high reward/risk would cause a very low percentage of trades profitable and consequently bigger drawdowns. This is always a trade off.
actually, I owe you an apology. I was the one not paying attention. I didn't realize your risk/reward was so wide. 40 pips seems very small to me. But 8 pip stops and 40 pip targets is pretty reasonable. I traded that way for a while. There was a guy on ET who came up with a program and offered it for free to any trader that wanted to download it. Now, I guess he has a business called "Bracket Trader." I personally never made any money that way, but then again, I never lost my ass. When it's going bad you feel like you are losing your mind. Put it on, get stopped out, it becomes like just the daily routine. I finally broke out by putting it on, and if I didn't get stopped out, putting something else on. And I just kept doing that until the whole position started working, and then I would close out everything.The thing is, some of those 40 pip targets, if left on bacame 140 pips and 240 pip profits. Of course, some of them just reverted and got stopped out. The funny thing is, I tried using trailing stops (fortunately in a paper account trading the same system) and the whole thing went to hell. at anyrate, I don't want to detract from what you are doing, and I will agree it is a hard road, but I admire your discipline.