DislikedAs you say hanover cherry picked but it does show what is theoretically possible. Crucially you've not mentioned an exit strategy, just an exit on the best price as observed with hindsight! If only. So to target 8:1 on every trade might not work in the long run. You may only hit target 1 out of 12 trades. But combine the entry criteria with an exit based also on candle patterns or a pullback to an ma/channel line/S/R and you might have a goer.Ignored
My point is this: no matter what exit point is arbitrarily chosen, S/R based trades invariably deliver better RR than the price-action-bar method that I used in my example. The 8:1 vs 1:1 applies to that example only; obviously each individual scenario will be different.
I'm not discussing a specific strategy here. Should I choose to do so, I'll start my own thread.
David
1