DislikedFxahilies!!! It's again me lol...
Sorry for a lot of questions... But...
If I right understand - 20-25pips loss in one trade is your risk tolerance???
So (like exemple) if youre risk tolerance is like 15-18 pips, then if market goes more than 15-18 - you have to stop trade (tolerance reached)...
Other words - If I and You are in the same trade in the same cross, and market goes against our positions, then I have ( it's just example) to stop my trade at -17(bcz my tolerance), even if momentum doesn't develop against...Ignored
It all depends on situation at hand, and each one of them is unique for itself, so its hard to answer, but I do my best.
When price goes against me my exit strategy is not based on some firm rule, thus, is based on multi scenarios that runs through my mind .. such as.. how fast is price moving against me (momentum, speed).. how the very candel closes after trigger time.. where is most recent high/lows.. the preconceived read on the market prior to entery (not a prediction)and kind of read I have on the market at the given moment.. the shape of my days profit/loss for up to that point.. and yes, tolorance is one of them too and most time is no more than 25 pips bcz i want to live to fight another day and that be my only explanation for my exit decision, at that point the way I look at it is 1. i can always renter (in the occurance of market fooling me) 2. I can dance with the market and look to play the other way.
On reversal enteries I trade manage it a little wider then 1-2-3 breakout setups (system II).
All that said.. I screw up a lot and basically learning the curve in pursue to craft up this thing, its a long race.
I hope it helps.