DislikedHi,
If a place a position on 30SL and 15TP, that's a 2:1 profit ratio... I mean, if I loose just once... I have win twice in order to just break even. Too much effort to get 0 pips.
ChristanchoIgnored
i think that this system, is a random luck system. using previous day's HH to buy, is not really indicating that we are following bull. neither is previous LL.
no matter what direction u go, and no matter what level u go from, it is a matter of random luck in long term. check those candles, two consecutive bearish candle, but u still can possibly win profit, if u buy from previous HH. it happens frequently.
we are not doing a trend following system, since this is a one-day trading system. if we talk about trend-following or contrarian, we may be joking.
now, why 15 TP with 30 SL is better than 30 TP with 30 SL, in my humble opinion, is because, generally, more than 50% likely, it is easier to reach 15 than 30. forget about directions, imagine u ask John and Tom, two random men, everyday, u command: run! John and Tom. Since John's task is 15 feet, and Tom's goal is 30 feet, after many many years, who won most by finishing his job earlier everyday? It should be John.
when consider profit/loss ratio, probability must be involved. we cannot say that 30 SL vs 15 TP is like 2:1 risk/return ratio. That's wrong, because we didn't consider probability.
Again, since i said price not moving in straightline, it is of coz frequently seen like eur/jpy profit in both ways.
thanks, i like discussions, please.