How To Make 200 Pips With A Small 20 Pip Stop Loss?

18 November 2016, 08:12
Ahmad Hassam

I have written a post on my blog about my Candlestick Trading Strategy.

First and foremost keep this in mind trading is a game of probabilities.

You will never be able to win every trade.

A winrate above 70% is what we want in our candlestick trading strategy.

You should focus on risk management more than profit.

I use candlestick patterns on H4 time frame to find low risk entries that catch the big moves in the market.

You can read the post in which I explain in detail how I make 200 pips with a small stop loss of 20 pips.

I have this risk management rule written in stone for me.

I never open a trade with a risk of more than 10-20 pips.

Most of the time I only open a trade with risk less than 15 pips.

Sometimes when the opportunity is very good, I can open a trade with a risk of 20 pips. But never more than that.

You just need to make 5 such trades in a month and you will make 1000 pips.

Second rule that you should write in stone in your trading rules book is:

Never will I overtrade.

Only open 1 trade. When it goes in profit, move the stop loss to breakeven and only then you can open the second trade.

Read my blog post where I explain my simple forex strategy that make 200 pips with a small 20 pip stop loss.

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