Quote:
Originally Posted by marciano999
What about risk-reward ratio? you are saying that you exit with 1 pip profit for example or lets say 4 pips, but the next level for the stop loss is 10 pips away. Thats a 2.5-1 ratio.
|
One could argue that
before the trade is made, the potential t/p is the next line of what ever price increment you set...so if stop loss is 10, then take profit is also 10, making the initial risk/reward 1:1.
Therefore,
after the trade is opened, no matter where a trader decides to close his/her trade ...due to new information or trading plan rules.... I feel is irrelevant to that initial risk/reward assessment.