Hello Everybody !
i am newbie on fx trading and i build my own strategy.
my strategy is based on M1 and M5.
Why M1 and M5 ? because i want to get out quickly from market, with win or loss.
But my problem is that when i put my stoploss, is far from 40 pips on M1 !
i think 40 pips on M1 is too much no ? my stoploss is very near on my entry but i have 40 pips !
so how i can optimize my stoploss ?
i use metatrader 5 with 5 decimals.
Thx for all people on Babypips !
40 pips would be a significant distance on an chart, let alone M1.
How did you select 40 pips? Is it always the same stop-loss distance of 40 pips for every forex pair at every time of day?
Hello,
No is not 40 pips for every trade.
i trade only on M1 and M5
for example, here is my chart on M1 and distance from my entry is 114 pips !
or points ? i dont know whether if poins and pips is the same ? metatrader say point.
So your long entry in the graphic is based on breaching a new high and the SL is based on a recent significant swing low?
Which actually looks OK. So you would just need to adjust position size to take account of the actual distance your TA indicates.
How is this approach working for you?
yes is that !
i adjust my position size according with my money management.
but my problem that if i enter on M1 is for optimize my stoploss distance.
to respect my risk/reward, with 114 pips, its hard to have 1:2 ratio.
this strategy work fine but i need to optimize my entry and stoploss distance.
for example, if i have 10 pips distance, its very easy to win 20 pips on M1.
I understand your problem. Make sure your entry and SL rules are comprehensive and exact. Keep logging how your trades perform. Just don’t get over-focused on always having a 1:2 r:r.
thanks for your help.
another question about lot.
i am a bit confused about this.
in metatrader, lot is equal volume ?
so 1 volume = 10$ per pip ?
0.10 = 1$ per pip ?
0.01 = 10 cents per pip ?
i put 0.12 on my trade and i win 13 pips and i win only 1.39$ ? why ?
i should win 1.20$ X 13 pip = 15.6$ ?
thx
Sorry, I can’t enlighten you on this, I trade via spreadbetting and it doesn’t work through pips and lots etc.
ok thx for your help
Basically, you need to set the SL according to the market solutions; not based on your choice or others preference.
