So I have been trading the FX Markets for a while now, with my own Trading Plan where I put a 10 pip stop loss and 15 pip profit target. It works well with my entry signals and usually gives me a proper exit.
I am usually trading the 15 min charts.
Recently I have been trying a new trading system which generates more frequent and decent entry signals for me. This makes it easier for me to enter the market with more confidence.
The problem with the system is, I still desire only 15 pips profit a trade with 10 pips stop loss, which is reasonable, however the system dictates to put my stop loss over the recent swing high or the recent 5 EMA and thus providing more breathing room to the market
My dilemma is that this stop loss place does not match with my risk tolerance of 10 pips, and most recently I took a 3 % hit because of this requirement.
How can I find the balance between my trading plan and this system's requirement?
Do I need to adapt position sizing to every trade based on where the stop loss is bound to be? If I did, than don't I need to target more pips in profit to make up for the position sizing?
I would really appreciate the guidance.
I am usually trading the 15 min charts.
Recently I have been trying a new trading system which generates more frequent and decent entry signals for me. This makes it easier for me to enter the market with more confidence.
The problem with the system is, I still desire only 15 pips profit a trade with 10 pips stop loss, which is reasonable, however the system dictates to put my stop loss over the recent swing high or the recent 5 EMA and thus providing more breathing room to the market
My dilemma is that this stop loss place does not match with my risk tolerance of 10 pips, and most recently I took a 3 % hit because of this requirement.
How can I find the balance between my trading plan and this system's requirement?
Do I need to adapt position sizing to every trade based on where the stop loss is bound to be? If I did, than don't I need to target more pips in profit to make up for the position sizing?
I would really appreciate the guidance.
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