I have been thinking about a system of trading hi-lo.
I trade on 1 hour chart. I long at the previous hour hi and short at the previous hour lo. Take profit for 10 pips and stop loss for 40 pips. I know you may wonder how can I place a S/L four times that of T/P. But I believe that this system will have much greater chance of T/P than S/L. But I still have difficulties in screening out those trades which fail to yield 10 pips, ie. especially those reversal point and zigzag area.
Can any great traders help me to get through this?
I trade on 1 hour chart. I long at the previous hour hi and short at the previous hour lo. Take profit for 10 pips and stop loss for 40 pips. I know you may wonder how can I place a S/L four times that of T/P. But I believe that this system will have much greater chance of T/P than S/L. But I still have difficulties in screening out those trades which fail to yield 10 pips, ie. especially those reversal point and zigzag area.
Can any great traders help me to get through this?