🔹Trade Management - Profit Target
Last updated
Last updated
Profit levels can be technical and non-technical, unlike the stop loss level which needs to be technical.
Non-technical: As per risk-reward, aim for 1:2 so profit can be taken when your profit value is double the risk that you took. E.g., if a stop loss is 10 pips and you take a profit of 20 pips.
Technical: For a bigger degree structure with entry set up on h1, the profit target can 1:3/4. Or until the time there is a trendline and last fractal break on h1.
Trailing stop loss to breakeven for a bigger degree structure entry: Trail your stop loss to breakeven or to the last higher low in case of buy entry and last lower high for sell entry, once you are at 1:2 profit.
Scaling out: You can think of adding one more trade while your first one is running and stop loss is put to breakeven so that the risk on the new trade is the same as the risk you took earlier for the first trade and now your overall risk is same as you took for first trade but you have two trade so your risk: reward becomes 1:4 if it was 1:2 earlier. DO NOT just scale out if you do not get a second entry set up and the stop loss of the second entry is not close to breakeven stop loss of the first entry. For e.g., you can add another trade as a Break Out entry if you have entered with Fib level in the 1st entry (combining Entry strategy B and D. Please refer to Strategies with Entry & Exits.
