Dislikedthere is a difference in limit and stop orders.
With limit orders you generally get favorable prices, positive slippage. With stop orders you very often get unfavorable prices, negative slippage.
Well, just to give you an example. I tested out a strategy on eur/usd.
First with high win-loss and low R:R. Now I could increase the slippage per trade to max 3 pips before it went unprofitable. I know it is already pretty good, because 3 pips slippage on each trade shouldn't happen normally.
But with a low win-loss and high R:R I could increase the...Ignored
well, I suppose it means we gotta wait for retracement and not to enter aggressively with stop order, right? it is what actually James16 advocates.
also, in this case we can have smaller stop and still higher R:R. even 1.2-1.5:1 will be significant. just recall as every time we enter with stop order price retraces on us...it is later all pip that would have been in our had we always waited for retracement. I can tell this with high accuracy cause I have spent countless hours watching my trades entered with stop orders reetracing on me.