Hi all,
I’ve recently formed my trading plan and set my TP and SL based on daily ATR(14). I trade using the 4Hr, 1Hr and 15 min charts and use the daily charts solely for TP and SL levels. I would then place my TP and SL 5 pips above / below the ATR range. Any comments for improvement or about R:R?
Closing a winning position is the trickiest decision in trading.
Why would you close a winner if your TA shows it is more likely to make further gains? Capping winners with a TP can guarantee a good r:r but it eliminates larger wins
Thanks for the reply tommor! I’ll keep that in mind 
Hi,
Using ATR with EMA and also look into support and resistance to check the current trend in the currency pair. Then you can use ATR value for setting Stop Loss. Use 2% risk of your account for every trade.
I agree. I dont use ATR, but ive never been a fan of TP.
Every trader and system is different, but personally I prefer to have pre determined levels where i scale in/out and adjust my SL to breakeven , then I try to lock in profit while allowing my remaining position to run until the market takes me out. Thats as close to a TP as i get.
As some others have mentioned, I too don’t generally like to use TP either. I have used TP when trading range bound strategy with stocks, but that was only because my R:R would be as much as 10:1. The same strategy did not translate well when I started to trade FX. I find that trailing my stop behind the price action is the strategy I prefer. I guess I like the idea of unlimited R:R. It’s a less controlled environment and can lead to larger drawdowns, so that is why I only risk 1% per trade.
TP and SL protect you from sudden shocks on long time timeframes, because you may miss time when the market can fall into panic and produce some sweeping movements which can wipe out your deposit. Bright example Brexit or SNB black swan,
[quote=“tommor, post:2, topic:85039, full:true”]
Closing a winning position is the trickiest decision in trading.[/quote]
No doubt about it… managing a winning trade is the most difficult part of my risk management strategy.
It has been a major focus of mine to continue to refine this area of my trading strategy.
SL and TP are two things that got to be utilized wisely, as it is something that can make big difference in our profit making plus comfort levels. I always make sure that I practice on demo account a lot to get this into line; if we get it worked accurately then we can generate great returns. The only place and the only way we can do this are on demo account, so that is where our priority should be setting straight away.
TP and SL are an important component in all trading activities. We can find several kinds of TP setup, but you have to choose which one match your trading system. And on the other hand stop-loss or SL can limited your risk in particular deal.
SL and TP are very good tools they are very helpful in trading . We do trading with limits by using these two . It is very vital for beginners who had difficulty in risk management. It also need some practice and analysis experience to use Stop loss Nd Take profit to get desired results in trading.
This is a classic example of the type of no-value, meaningless, nonsense post that’s increasingly filling the forum.
It’s just gibberish, and that’s being quite polite.
It helps nobody.
It’s like almost all your posts, though. Why the moderators allow you to do this for ever is beyond me.
Actually there is no fixed area to determine SL and TP, using average true range indicator on H4 I think good, which ATR will measure average movement on these frame, put SL 5 pips above or below value ATR I think good, then learn to put TP also at least use risk reward ratio 1;1