Setting SL at 38.2 whilst TP at 161.8 will always be a 1:1 R/R ratio, as I’ve mentioned numerous times in the past. If you find your SL, like in this case, 1 or 2 pips more than your TP (which I find it strange mathematically), then just simply set your SL equal to your TP.
Now, for this case the TP and SL is both 43 pips… so your R/R is 1:1 because 43 = 43. If you put your SL at say 61.8 or 50.0 then your R/R will be different as your SL will smaller than 43 pips.
Assuming you have $1000 capital and you set yourself earlier that you don’t want to lose more than 3% per trade. Simply calculate 3% of $1000 which is $30 and so on. If you ought to lose 10 times in a row, you will lose $300, which is 30% loss over 10 trades which is still OK. *this is assuming you want to risk fixed $30 in your first 10 trades. Some people change it fluidly based on their capital, for example say he lost his first trade ($30), then his second trade he will only risk $29.10 resulted from this calculatatuion : 3% of ($1000 - firstloss). I personally use the first one, do not ask me why. There is no right or wrong way… it just suits me.
So you know how much you will risk per trade ($30), now its time to define what is your volume. For this trade, your SL is 43 pips. Simple calculate [B]$_risked divide by SLpips[/B]… which for this case $30/43pips equals to $0.70.
[B]How it is impossible to lose more than your pre-defined risk using Macfibo[/B]
If your SL hit before 5x8 exit occur, you will lose maximum $30 because thats how you set your volume and SL earlier. If 5x8 exit mechanism occur BEFORE hitting SL, you will lose less than $30.
[B]Even If Close position when MA cross, that can also lead to a big loss![/B]
I assume that 43 pips is too big for you? Then move your SL tighter to 50% or 61.8% if you must… but it still doesn’t change the fact that you WILL still lose $30 anyway BECAUSE your calculation will be the following :
Assuming SL at 50% will give you 30 pips… then $_risked divide by SLpips ($30s/30pips). Your volume will be $1… if your SL hit at 50%… you will lose how much? YES… $30. The only difference is you will RISK LESS WITH MORE REWARDS this way… and that is the only difference. You will still lose the same amount.