PART 4:
How i set my SL and my TP
My basic SL is calculate like that:
X = pips range from the 4 last 4H bar
SL = market price - (X * 0.68) for long
SL = market price + (X * 0.68) for short
But often ill substract or add to the SL value. Its important to look at where the price is and what look like the market,
News coming , etc etc. Each pair use a little different variation but the basic remain the same.
For the TP its a bit hard, it should be 2 time bigger than your SL to keep a good ratio but in same time its depend on how
you entered in the market, with multiple lot you can take the entry price + number of pips your SL use / 2 for the first one
+ 1/4 for the second lot and no TP for the last who will be your runner at BE+1.A little exemple to make that more visual :
SL = 40pips , TP1 = 20pips(SL/2), TP2 = 30pips((SL/2)+(SL/4)). Its a art to place a good SL and can not be a static number, its realy a
dynamic number.Personaly my motto is "All or Nothing" , my TP is SL*2 or near, ill only close earlier if i get a strong
signal against my position. But its up to you to use whatever who work good for you. 50 trader can use 50 different
methodology and at the end all is sucessfull in what it do.
The last thing about SL. If the X*0.68 return a number under 35, use 35. You need to let the market breath a bit.
Best Regards,
EricFX
How i set my SL and my TP
My basic SL is calculate like that:
X = pips range from the 4 last 4H bar
SL = market price - (X * 0.68) for long
SL = market price + (X * 0.68) for short
But often ill substract or add to the SL value. Its important to look at where the price is and what look like the market,
News coming , etc etc. Each pair use a little different variation but the basic remain the same.
For the TP its a bit hard, it should be 2 time bigger than your SL to keep a good ratio but in same time its depend on how
you entered in the market, with multiple lot you can take the entry price + number of pips your SL use / 2 for the first one
+ 1/4 for the second lot and no TP for the last who will be your runner at BE+1.A little exemple to make that more visual :
SL = 40pips , TP1 = 20pips(SL/2), TP2 = 30pips((SL/2)+(SL/4)). Its a art to place a good SL and can not be a static number, its realy a
dynamic number.Personaly my motto is "All or Nothing" , my TP is SL*2 or near, ill only close earlier if i get a strong
signal against my position. But its up to you to use whatever who work good for you. 50 trader can use 50 different
methodology and at the end all is sucessfull in what it do.
The last thing about SL. If the X*0.68 return a number under 35, use 35. You need to let the market breath a bit.
Best Regards,
EricFX