Help with TP and SL ratio and how much | Forex Factory

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Help with TP and SL ratio and how much

  • #1
  • First Post: Jun 13, 2022 11:42am Jun 13, 2022 11:42am
I got my strategy, it works most of the time. But i can't seem to get the TP/SL thing right. Some help from the pros would be appreciated

I usually use TP/SL on a 1:1 ratio (+20/-20 pips) for no particular reason as i have to put something (not having SL is not an option, i learned my lesson) and it was something, basically flying blind here.
Before i varied the amount of pips between trades and i considered that incredible stupid, one bad trade and i was done, so now it's the same for all.

I hardly ever close before SL hit, only when i see it's really going bad. So most of the losers go to SL. That's done.

Now the TP, today i lost money overall, too many SL and to on top of that i closed the winners before the TP, and they would have made more then what i closed for, but you never know right, it seemed like nice profits.

Now is 1:1 a good idea, or should 1:2 be better? in theory i only had to get one right to cover 2 losers.

And the amount, 20 pips? many times i get kicked out only to see it reverse a bit later, should i insted go for a the close value of x candles behing the entry? A bigger pips interval? But then i came full circle and i have trades with different risks and all it takes is one bad trade to destroy a day.

thanks for any help
  • #2
  • Jun 13, 2022 5:59pm Jun 13, 2022 5:59pm
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting Polimini
I got my strategy, it works most of the time. But i can't seem to get the TP/SL thing right. Some help from the pros would be appreciated I usually use TP/SL on a 1:1 ratio (+20/-20 pips) for no particular reason as i have to put something (not having SL is not an option, i learned my lesson) and it was something, basically flying blind here. Before i varied the amount of pips between trades and i considered that incredible stupid, one bad trade and i was done, so now it's the same for all. I hardly ever close before SL hit, only when i see it's...
I personally don't think TP/SL should be fixed nor with any ratio ... Any exit should be for a reason not by a fixed value.

Of course put a hard emergency SL ... but when you see a reason to exit (market showing you), do it either on the profit or loss side.
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Jun 14, 2022 1:45am Jun 14, 2022 1:45am
It depend on your risk and staregy winrate.

The risk it's up to you to decide, meanwhile the strategy win rate you can find it when you backtest.

Goodluck
My entire life in one sentence: it didn't go as planned, and that's ok.
Random Scalper All Time Return: 9.8%
  • #4
  • Jun 14, 2022 8:01am Jun 14, 2022 8:01am
Where you place the TP and SL should depend on the whole of what you are doing.
There is no particular ratio of 1:1 or 1:2 or what ever.
It depends on what you are trading and on what time frame.
My signature is: "Classified".
  • #5
  • Jun 18, 2022 9:37pm Jun 18, 2022 9:37pm
Yes, I agree to all my friends.
TP/SL must be compared with Timeframe you are analyzing
SL/TP can be used according to

  1. Fibonacci High and Low
  2. Support and Resistance Lines
  3. Trend/Swing pattern break
  4. ATR indicator
  5. Bollinger Band Patterns
  6. Momentum
  7. Reversal Signal Confirmation

No hard and Fast Ratio (1:1 or 1:3) should be adapted. If you find anything wrong Please ignore the suggestion and update the information

  • #6
  • Jun 21, 2022 2:22am Jun 21, 2022 2:22am
Quoting Polimini
I got my strategy, it works most of the time. But i can't seem to get the TP/SL thing right. Some help from the pros would be appreciated I usually use TP/SL on a 1:1 ratio (+20/-20 pips) for no particular reason as i have to put something (not having SL is not an option, i learned my lesson) and it was something, basically flying blind here. Before i varied the amount of pips between trades and i considered that incredible stupid, one bad trade and i was done, so now it's the same for all. I hardly ever close before SL hit, only when i see it's...
1:1 is risky; but what’s the winning ratio of your trading system? If you have 70%+ winning ratios; then 1:1 should be okay!
  • #7
  • Jun 21, 2022 4:41am Jun 21, 2022 4:41am
What timeframe are you trading?

Quoting Polimini
Now the TP, today i lost money overall, too many SL and to on top of that i closed the winners before the TP, and they would have made more then what i closed for, but you never know right, it seemed like nice profits.
Too many SL? How many trades you took? It would be nice to see your trades and why you took them. You will not find a correct answer about RR, it doesn't exist. Your SL should not be always 20 pips, it should be at a place where you know your setup is not working anymore.
  • #8
  • Last Post: Jun 21, 2022 4:44am Jun 21, 2022 4:44am
Quoting Maximilian80
{quote} 1:1 is risky; but what’s the winning ratio of your trading system? If you have 70%+ winning ratios; then 1:1 should be okay!
with 1:1 it lowers a bit, because to put a reasonable TP the SL will trigger more often. I don't know if i make it sound clear but that's the problem.
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