The endless tweak is an interesting phase in a traders career.
Some get stuck in for decades - not realising what they are doing.
They can tell you all about how to trade, all about every aspect of technical analysis but cannot make money.
There is a book written by Gary Smith - How I trade for a living - one of my favorites - he tells his very painful story of how it took him 27 years to trade properly.
Pit bull by Buddy Schwartz (interviewed in Market Wizards) tells how it took him 9 years.
The problem with the holy Grail, is you actually think your being productive - when all your doing is constantly moving the goal posts.
All this can be avoided if we truly accept that losses are part of the game. Sure we have all accepted it on a theoretical level, but we haven’t on a deeper level.
We still think we can avoid losing, so we go searching for that system that never loses.
I think one of the biggest errors in this business is this myth that as beginners we can find a system with a 75% win rate.
While it’s possible it gives unrealistic expectations. Some of the best traders have a win rate of 30%
But that thought would terrify a newbie. Profitable traders though know on a deeper level that it’s not how many you win
Is about when you win how big you can make them.
Which brings me to the whole profit target thing, and this has been debated many times
If you are using profit targets at something as absurd as 2:1 you gonna need a very good win rate
If you let profits run and get out when the market tells you the move is over you will catch the bigger moves that mean you can have less of a win rate.
I am also one for disencouraging scalping - now I may be wrong here but - scalping forex probably doesn’t lend itself to larger r multiples because it is such a whippy market on the lower timeframes.
So traders use profit targets, but profit targets tend to mean you need a higher win rate - hence the endless tweak.
It’s all a vicious circle with only the broker the one making money.
There will always be exceptions to the rule, what I am saying is general to most people.