Lost: 157 pips
My limit long order was fulfilled for 1000 units on the EUR-JPY pair at price 156.22 at 11 am.
My TP was 1 pip and SL = 156 pips.
At 5 pm, the price took out my SL. It had dropped 150 pips in 6 hours which translates to a 25% loss. This was totally unexpected. I had thought that my 150 pips SL would be sufficient.
But apparently I was wrong.
This taught me an important lesson: the SL for trading EUR-JPY should be more than 157 pips.
Maybe 200 pips would be more appropriate. And if, I was not willing to risk 200 pips SL, then, I should stay away from the EUR-JPY pair.
For CHF-JPY, a 100 pip SL was sufficient as evidenced by my 6 weeks' successful trades.
A good idea would be to do a study on intra-day fluctuations (daily peak-to-peak amplitudes) on the Ranging Pairs. This would help us decide the proper SL's to use on the respective pairs.
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