1. I initially look to set up a trade with a 20 pip stop & a 20 pip PT, I set my bank risk such that the 20 pips represent the maximum I'm prepared to lose.
2. If there is what I regard to be significant support or resistance inside that 20 pip stop I may well place my stop just a bit away from it, but never a stop greater than 20.
3. If price moves in my direction I will look to pull my stop down to just past the swing point.
4. I watch price action and am prepared to either take all or part of the profit at +10, but if I see what I consider a good reward prospect I will hold out for 20.
Tonight I had to go out, and just before I left the high swing point had been challenged 3 times, I had my stop just above it. I fully expected to be stopped out but if this level wasn't broken thru then I thought there was a good chance of a 20 pip target being reached, no magic involved but the location of a 20 pip profit didn't look to me to have anything in the way. I'm fairly sure that first move down would have netted the 20 pips, but it was close and may not have done. If I had been here and saw that it almost but didn't quite get to the PT I may well have closed the trade for around 18 pips or so. So although I enter the trade with a 20/20 position, I use my eyes and PA to manage the trade, no two situations are the same so it's difficult to answer your question, but in principle I'm looking for 20 pips when I enter.
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