While celebrating eight consecutive months of being in the green, I started September with the best trend trade I have ever made. Bear in mind, I manage a mediocre 2k+ account, with monthly additions to help compound growth and give my P/L a sizeable cushion from retracements.
The tweak is placing my T/P at the exact place where I have the highest probability of making a 30+ pip profit. How I did this is all my charts are sprayed with a parabolic SAR (stop and reverse) indicator* My set up being 0.09 - 0.4. Which provides a quicker response. I can join these balls with a horizontal line.
On Friday last the EUR/JPY was in an upward trend, which needed the Daily chart to see what had happened previously. It was a great set up to see a prevous high resistence zone. I placed my T/P at just below the joined up horizontal PSAR balls, with a similar S/L risk below. Let it run overnight.
Spot on. Next morning resulted in the trade hitting the T/P just before it retraced back down. Of course, I can only say that my probability assessment worked well.
However, my message to all interested traders is that ‘correct’ placing of T/P orders is the simpliest key to eventual profitability. Which, IMO, makes RRRR (Random Risk Reward Ratio) obsolete.