Guides · 3 min
Set TP and SL and understand risk/reward
Stop loss is not a prediction of loss. It is the limit beyond which the idea is no longer played. Take profit defines the target. Their distance forms R/R, but a high ratio matters only when levels remain coherent.
Start with invalidation
Place the level that contradicts the reading first. For Long, SL is below entry; for Short, above.
A stop placed only to reduce loss may sit inside normal candle noise.
Give the target meaning
TP may target a previously traded area, a range-compatible extension, or a planned exit.
Artificially moving TP improves displayed ratio but weakens the decision.
Read R/R
A 2R ratio means planned gain is twice accepted loss. It says nothing about target probability.
In Daily and Endless, risk percentage defines stop loss impact; the entire stake should not disappear automatically.
Entry sits in the middle. Stop is one risk unit away and TP two units away, both tied to visible structure.
Common mistakes
- Moving stop farther after entry to avoid losing.
- Setting TP only from the desired ratio.
- Risking more after a loss to recover quickly.
Before validation
- 1 Does the stop match visible invalidation?
- 2 Is TP reachable relative to normal range?
- 3 Does a stopped trade leave enough capital for later decisions?
Quick questions
Is 5R better than 2R?
Not automatically. It requires a much farther target for the same stop.
Why does stop count first in one candle?
Without finer data the order is unknown. The conservative rule prevents choosing the favorable outcome later.
OpenTrend levels are game scoring inputs, not investment recommendations.
Keep learning
Practical reference material for understanding the mechanics used in OpenTrend.