AUD/USD Swing Trade With 20 Pip Stop Loss And 200 Pips Profit Target

17 December 2016, 12:03
Ahmad Hassam
0
80

AUD/USD is a currency pair that is well behaved most of the time unlike GBP/USD and USD/CAD.

There are 2 things in my trading strategy: Stop loss and take profit target.

Before I enter into a trade I need to know what should be the stop loss and what should be the take profit target.

I prefer a small stop loss between 10-20 pips.

If the stop loss is bigger than 20 pips, I think the trade is too risky and don't enter a trade.

Take profit target should be between 100-200 pips.

Profit targets greater than 200 pips are most of the time difficult to catch.

So I never use a profit target greater than 200 pips.

Read this recent blog post in which I analyze a recent AUD/USD swing trade that made 200 pips profit with 20 pips stop loss.

The trade lasted 50 hours i.e almost 2 days.

Once I open a trade, it is set and forget.

Either the stop loss will get hit or the take profit target will be hit.

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