When deciding to place your stop loss or target profit , how do you estimate how much do you set your stop loss or target profit? Example is the ATR is currently 25 pips on the daily chart and you are going long, how do you decide the value of your stop loss ? If I place it 25 pips below my entry, then where do place your target profit ? Would it be also 25 pips ? And If I do that, that risk reward ratio is 1.
If I want my risk reward ration to be 1:2, and the ATR is currently 25 pips on the daily chart, how many pips should I set my stop loss and target profit for a risk reward ratio of 1:2?