So I check some forex signal…in 1 week they generally only lose less than 4 trades and they do like 20+ trade
The sl is like 150+ pips…does using very big sl will make profit easier?
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the risk is higher though with a wide stop like that, although it looks like you’re giving the price some space for it to develop but if it goes against you, the loss is quite big. I don’t think it’ll be profitable in the long run. i personally believe in a more dynamic approach rather than blindly following signals, we don’t move the price bro, we ride it. cheers
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What are you risking on a 150 pip SL in terms of percent of account capital?
How do you identify the SL level?
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I think any signals are a risk. There is no guarantee that you are using them correctly.
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Whoooooa!!! I like that!
But yes, I agree that is a wide SL. And you could wake up to find out you got stopped out. No bueno.
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Can you quantify this?
This is the real question to answer and where your focus should be…
Too many people try to talk about trading in absolutes, and black and whites.
It couldn’t be further from the truth. Trading is highly contextual and primarily subjective.
A $3 stop on 1,000 shares of stock is a loss of $3,000.
A $3 stop on 10 shares of stock is a loss of $30.
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Ooops its already risky in trading, yup your right. My mistake, just trying to point that it is a wide stop. But like you said it is subjective. Your explanation is clear and easy to understand. Thanks
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You’re welcome and happy to help. Again-- this is another absolute term. Just be careful thinking like this. 150 p is “wide” to you. That is the incorrect metric (or, adjective) to apply because there is no context. Is it wide with respect to what you’re more comfortable applying given how large your position may be? I think you’ll progress faster if you stop limiting yourself and trying to box everything into a simple defined term.
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Its more of exposure rather than way of thinking for me, that’s why im here learning from discussions like this. It widens my view of trading. Thanks bro
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i agree with you , signal is good i know and sometime there is a chance to bring good profit by signal but its all about short time approach.
Good point. I didn’t think about that. I applied the 150 pip SL to my own thinking and I was like “whoa!”
But, obvioulsy, he is using a different strategy.
I have to see it from his position.
Or even apply to to a chart and see what it looks like, first.
@hairyfx you said the price could go against you. And I agree with that. However, I think this could be applied to a B&H strategy.
If you think currency will go up over the next 6-12 months, based on fundamentals, then I understand.
But, I think I need to see this strategy in action before I jump to any more conclusions.
I would like to see how a 150 pip SL is applied to 20+ trades in just a week.
Which forex signal is it?
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Happy you were able to come to the right conclusion 
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Exactly- it’s not easy to think about things from the perspective of someone else. You can make it easier by thinking more abstractly and less about specifics. Happy to help and keep on questioning everything you come across that doesn’t pass the sniff test.
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Im curious as well, i’ve never used any signals before
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Why is no-one talking about the Risk to Reward ratio or asked about the TP?
I think it is the only thing that matters here, not how much you risk per trade or other things. That is subjective, you can risk 1% or 10%, who cares, it is something you decide based on your risk tolerance.
The win%, according to you, is 80% (16 wins out of 20).
If risk to reward ratio is 1:1, you have found the holy grail and please let me know about it, so I can put all my money in it
If the take profit is 15 pips, with a risk to reward ratio of 1:10, yeah, accuracy is high, but you are still losing money in the long period.
You can also choose a strategy with 10 pips as stop loss and 1 pip as take profit.
I’m sure even if you flip a coin, with those conditions, your accuracy will be very high. This doesn’t mean that you are making money in the long period.
Any signal you’ll choose will come along with risks. You can’t be sure of getting accuracy on any signal. You just have to be careful about how the market is moving and can predict it accordingly. But still that doesn’t mean that the prediction you made will be completely accurate.
Do Forex signal that use 150+ pips sl generally have high accuracy?
The simple direct answer is no.
Accuracy is measured by the negative excursion of a trade (draw down) and the win percentage and the exit.
What is better;
A 150 pip stop loss and a 300 pip profit target
or a 50 pip stop loss and a 25 pip profit target.
You might think the former is better but what if the former had a win percentage of 10% and the latter had a win percentage of 90%.
What if the stop loss was 300 pips and the profit target 300 pips and the win percentage was 75%?
what if 80% of the time all trades hovered in a negative unrealized loss before hitting target or stop loss?
You decide.
Using wide stop losses may decrease the probability of it getting hit because the price has to travel further but the market is fractal in nature. Using a 150 pip stop loss on the daily or weekly chart / time frame may be adequate. on the 5 minute chart / time frame, it may be too excessive. However it will only reduce the time it takes for it to be hit if the trade is going to be a loser anyway. Furthermore, this metric alone is inadequate to make an informed decision on accuracy.
If your S/L is too wide then your trade becomes passive, your chances of being stopped out are less, but your risk to reward ratio is skewed, taking a tighter position and this will pay off, obviously enter at comfortable position, for instance if you let’s say have a 50 pip S/L, may be take an additional 10 pips.
However your stake size can increase, and your risk to reward is greater and could allow for at least 1:1 very quickly, or if you don’t want to take a quick profit 1:2, 1:3 or more if you want to let it run, would always advise take a profit reduce your stake if you intend to let it run and then always use a trailing stop.