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Originally Posted by watermark
Thanks Linuxser, your explanation was greatly appreciated.
Thus according to TSR (assuming Maximum Stop Losses still Long 16 pips short 13) it means that the stop loss in case of buy has to be adjusted to just 16 pips.
Do you suggest that the buy/sell trigger & TP should be in accordance to Dolly indicator whilst the SL in accordance to TSR?
Watermark
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An indicator is just an indicator.
TSR is calculating the SL according to R/R. So, if you´re long and the cross have 60 pips room up, and TSR is set to a R/R of 3, your SL would be 20 pips. But, if you choose to use that 20 pips they would be in the right place?
Set the best SL it´s extremly hard.
Maybe, using TSR you will be burned by 2 pips because you set the SL 2 pips above some resistance when you need to set below them.
Maybe you set a hughe SL and lose a lot of money because the trade was against you since the beggining.
Maybe, you need to set the SL above pivot when you´re short.
All the time it´s maybe maybe maybe. Only you can set the best SL for you, Indicators help, a pin bar help, last low help, etc etc.
I believe, the best way is to use a combination. IE: last swing with a few pips above/below.
I personally like tiny SL and trailing stops. Because if I´m in the right side of the trend, maybe I ´ve got some SL hit, but always I can re-enter. I believe hughe SL are for the big boys because they can afford them.