The issue of small TP and Large SL is at the core of the scalping strategy:
a) You certainly have to have your SL outside of the trading channel, otherwise you choke the pair, no breathing room, and you make your own losses.
b) Scalping strategies take what we can, as many times a day as we can. To say that we only take 3 pips is not correct:
There is hardly ever a day when a pair has more than one SL in a single day, no such thing basically. And during a day, we scalp 5 or 10 times the pair, each time making 3 pips in the EurChf or EurGbp, which have the worst ratio TP/SL, but the best profit margin in the long run. So the TP for the whole session is 3 pips multiplied by the number of scalping trades, more like 30 pips TP combined!.
That is the idea of scalping.
And yes, if you get stopped out you lose a couple of days in that pair, no big deal. Hopefully the other pairs are helping along…
But this remains a time honored way of trading, because it works.
In other pairs the difference is not so large:
UsdJpy TP: 13, Sl: 12
EurCad: TP:12 Sl: 62
EurAud: TP:13 SL:40
The TP is dynamic in some of the pairs, as well as the SL, thru the Breakeven function. Most pairs also have after-hours settings which reduce TP & SL when the London session begins, just to close the day’s session before the market goes wild in the European session.
The SL has been reduced in the v7 version, since with the help of the News Filter, we expect less variations over the course of the hours that we actually trade. The drawdown is also reduced. You can see those figures in the backtesting reports posted in our website.
Themtharhills, if your UsdJpy is not trading, check the settings. If you need help let me know and we’ll check it out. It should be trading daily.
Forxproptrader: Here is the link to our new Real Account, opened with the release of version 7, which contains the News Filter and other improvements.
Broker: MB Trading (ECN), TimeZone: New York (currently GMT -4 on DST). Entries marked “withdrawals” correspond to the ecn commissions on trades charged by the broker.
Started trading on Oct.4th, 2011,
![](http://www.myfxbook.com/widgets/174647/mini.jpg)
Since the Real Account just started, I am posting the older demo tests.
They run each EA independently and show several months of trading.
Breakout Hunter, started in April 2011. Updated to version 7 on Oct. 4th.
![](http://www.myfxbook.com/widgets/151977/mini.jpg)
Master Scalper, started in August 2011, started with release of the previous update. Also updated to version 7 on Oct. 4th.
![](http://www.myfxbook.com/widgets/151982/mini.jpg)