Hello All,
What are your thoughts on predefined stop loss and profit targets or bracket orders?
My trading style with one contract has been to:
1. Enter the trade
2. Set a stop loss in a good location (preferably below some price action support or resistance)
3. Pick a profit target level (at some resistance level if long) and wait for price to break that level for more profits.
The problem I face sometimes is price comes to the level and retrace down (if long) and I lose some profits. It makes my decision making kind of challenging. Of course one contract is somewhat a challenge too.
Lately, I been thinking of just exit a certain profit. For example, aim for 20 ticks profit per trade using 20 tick stop loss. That means with a win rate greater then 50% I be profitable on the year. Obviously, I want a higher win rate then 50% (hopefully between 60% and 70%)
I appreciate your comments, opinions, or advice. Thank you.
