If you run a "50 pip TP / 100 pip SL" test on random data, you will find that the win rate is just about 66.6%. Meaning you get 2 50-pip wins for each 100-pip loss. Similarly if you have equal-sized TP and SL, you'll get a 50% win rate. You end up flat, before you consider spreads, slippage, commissions, etc. You can't pull profit out of randomness that easily.nika » Wed Feb 18, 2015 7:00 am wrote:In most cases, when such volatile pair as GJ is doing 50 pip movement in one direction, it's more likely that it will do 50 more pip movement into the same direction, then100 pip into another.
Obviously GBPJPY isn't random data. But for the simple approach you're using, I would bet it's going to act just about the same.