Will setting SL and TP 5 pips away from entry work in the long run?

Trading Systems
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I have been working on a strategy. I will check the trend through 15 minutes. Check the tactics (Stochastic and Candle Pattern) on 5 minutes and side by side watching a 1 minute chart for checking the chart patterns.

Basic moto will be following the trend but I will enter the market through confirmation on 5 minute and one minute. So, I will set TP and SL 5 pips away from my entry point. Therefore, 1:1 ratio. There is no commission and spread is 0.7 pips.

So, will I be able to become profitable on long run? I know it totally depends on my trade being perfect. But If anyone ever tried the same strategy or rules?

Currently after one month testing, I am near 40% winning ratio only. I am on demo and still learning.

Thanks

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In short no , the candles and the small target does not allow the noise of the market that will take you out more than you win as you have just found. If at 40% win rate you need a good 1:3 to stand a chance of profit

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@Lang15 Can you please elaborate what exactly you are referring to the noise here?

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Movement of the market , a 5min and 1min will never show true direction so every trade is a shot in the dark and holds little to no weight, Need to look at the bigger picture ie a ATR on higher timeframe

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@Lang15 Yes, that is why I will use MACD and Moving average on 15 minutes. Plus watching the price zones of the pair.

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@Lang15

Here is an example. Just taking the EU last Friday.

15 Min Chart : https://www.tradingview.com/x/G9GbVGRY/

5 Min Chart : https://www.tradingview.com/x/BZq5aSeK/

As my indicators in 15 minutes are showing downtrend. I have modified MACD and the black background color is for sell and white for buy.

I will sell in 5 minutes and 1 minutes after the confirmation and price level reaction.
You can see the stochastic and Candle patterns in 5 minutes.

Hope this is clear. Though this strategy will be a little pain in ass when market is ranging. I’m working on that.

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Have you ever heard the phrase “ death by a thousand cuts”? This is what your account will experience.

But I do encourage you to try this strategy using a demo account. First, it is fun testing new strategies. Second, you will gain first hand experience.

Good luck!

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@MattyMoney Thanks for your great phase. Lol.

Yes, working on it for creating better entry rules and understanding the ups and downs of it.

Thanks again for your phrase.

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