I enjoyed reading the Decisionbar manual a few times, one of the key messages is ADAPT.
Les says that markets change their patterns, they don’t always move the same way and he’s right. You may have a trading plan that works for 3 months and then falls over badly because the markets behaviour changes. This can be due to some political situation, fear and all kinds of other things that affect monitory flow and traders views of safe havens for currency.
Although when I started trading I was a quick win high profit (and high loss) scalper I’ve calmed down now to making serious trading decisions, aiming for reasonable targets achievable within 2 or 3 days. I can ride the news out because my risk is much lower, and entering at a good place (top of a channel in a trend) means that it’s more unlikely for a stop out in some weird 100 pips news that goes the wrong way.
Target wise, I look at risk/reward. I set my target to somewhere I believe the pair will achieve in 2 or 3 days. My minimum is half my stop loss. So I aim for at least 50% profit. If the trade will not yield that target then it doesn’t go on. I know, actually, that a lot of tutorials look for 200% profit but that is quite long term and the longer you hold the trade the more unlikely it is to reach target because frankly you don’t know what will happen next week, let alone next year.
Anyway more on decisionbar soon I am just waiting for their affiliate programme to get going and I’ll write up how I use it to find Entry/Exit points for trades.