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griffin · 13-01-2003, 16:35

Thanks Gregh, and there I was thinking I was doing ok!

Right, now I understand the point of stops, to cut losing positions free and limit loss, it seems so obvious now,(doh!). Would it be right then to say that if I set a limit at twice the stop then on average I would only have to be right for half the deals? How would this deal seem to you...

Same account size, 20k

GBP/USD 1.6000/04, going long 2 lots, set the stop at 1.5965 and the limit at 1.6070, is that too tight a stop or too optimistic a limit? I suppose it depends on the market volatility. That would be a risk/profit ratio of 1:2, maybe that's a bit high is it? Maybe 1:1.5 ie stop at 1.5965, limit at 1.6053? Have I got that right?

I think I might be in the wrong forum here (advanced!!), and diverting this thread, sorry.

Peter

13-01-2003, 16:35	#21
griffin level 1 Join Date: Jan 2003 Posts: 16 Downloads: 0 Uploads: 0 Rep Power: 0	Thanks Gregh, and there I was thinking I was doing ok! Right, now I understand the point of stops, to cut losing positions free and limit loss, it seems so obvious now,(doh!). Would it be right then to say that if I set a limit at twice the stop then on average I would only have to be right for half the deals? How would this deal seem to you... Same account size, 20k GBP/USD 1.6000/04, going long 2 lots, set the stop at 1.5965 and the limit at 1.6070, is that too tight a stop or too optimistic a limit? I suppose it depends on the market volatility. That would be a risk/profit ratio of 1:2, maybe that's a bit high is it? Maybe 1:1.5 ie stop at 1.5965, limit at 1.6053? Have I got that right? I think I might be in the wrong forum here (advanced!!), and diverting this thread, sorry. Peter