Trading Hi-lo

I have been thinking about a system of trading hi-lo.

I trade on 1 hour chart. I long at the previous hour hi and short at the previous hour lo. Take profit for 10 pips and stop loss for 40 pips. I know you may wonder how can I place a S/L four times that of T/P. But I believe that this system will have much greater chance of T/P than S/L. But I still have difficulties in screening out those trades which fail to yield 10 pips, ie. especially those reversal point and zigzag area.

Can any great traders help me to get through this?

I strongly suggest to stay away from it!!

Momentum is going to wipe your gains in no time. Looks pretty on hindsight but real time is another story. If you still insist on doing this trade, do the contrary with the stops. Instead of having 40 pips, close that range, maybe do a 1:1 etc. Or, have the trigger ready to pull in case the market comes back to negative land. Just think there will be another hour/another chance.

Shoot for a 40 pip profit with a 10 pip stop, but even then the rewards will be less when you consider spread as well. Going with a 10 pip TP and a 40 pip SL will be frustrating and most likely disastrous for your account, because you could have 4 straight successful trades and then lose 40 pips on the next bar leaving you break even or worse after 5 hours. Always plan for the worst and then double it! I dont mean to discourage you, but this is not a strategy I would trade in its present form. I hope this helps.

The idea can be cehck thru via past data bar easily. Just pick any day, and check whether your idea gain or not.

If the idea ended with positive gain, try another day. If it get some edge, I can make simple EA for monitor past data.

Let post some data.