Think about this.
We take 100 trades. Every trade is a long with a 100 pip stop and 100 pip target.
50 trades hit our target. 50 trades hit our stops.
How many of the price paths that reach our stops were once profitable during it's way to the stop?
How many of the price paths that reach our targets were once losing on its way to the stop?
I think it'd be safe to assume 50%.
So 25 of our winner trades were once losers and 25 of our losing trades were at some point winners.
Do you manage the losers and let the winners run?
Yes or No... and Why?
We take 100 trades. Every trade is a long with a 100 pip stop and 100 pip target.
50 trades hit our target. 50 trades hit our stops.
How many of the price paths that reach our stops were once profitable during it's way to the stop?
How many of the price paths that reach our targets were once losing on its way to the stop?
I think it'd be safe to assume 50%.
So 25 of our winner trades were once losers and 25 of our losing trades were at some point winners.
Do you manage the losers and let the winners run?
Yes or No... and Why?