Trade Management - Profit Target

Profit Target

Profit levels can be technical and non-technical unlike stop loss level that 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 of the risk that you took. E.g., if stop loss is 10 pips and you take profit of 20 pips.

Technical: For a bigger degree structure with entry set up on h1, 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 new trade is 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 Entry strategy lessons)