Yes, that is correct. I dont think 200 - 300 pips is a big problem. Just because my stop is 300 pips my target is not 600 pips. Richard Krivo who proposed this idea of SW, uses a 55 Donchian Channel on 4H to place the stops, which were beyond 300 pips. But the as the trade goes he will scale out of the position and trail his stop along 55 DC on 4H. He never paid attention to Risk Reward, all he cared was if the market is strong/weak (trending), are there are any resistance/support near by (he was looking for at least room for 100 pips) and a breakout of the channel to enter. And I have seen his portfolio and his live trades it is magnificent. So the ultimate idea was to give the market enough breathing room do to its thing, and take money of the table as market offers, it makes sense given that SW itself is accurate about 70 - 80 %.