A lot of the traders have very simple rules when taking their profit; Enter the trade and take profit just before the next S/R area. And there is nothing wrong with that, that strategy definitely works. But by doing that, you limit yourself in terms of how much profit you can take from the market. A lot of times when people hit their profit target, the price just breaks through that S/R area and it continues further.
Nowadays, we have less good trades because of how the market has changed, and that is why we focus on getting as much as possible from the few good trades that we get. And hence why we abandoned the fixed TP method.
The strategy of course has its downsides, you will close trades on break-even or only with a 1:1 ratio a lot more compared to having a fixed TP, but on the other side, you will catch more of those large moves in the direction that you are trading in. Those 4:1, 6:1 and even 10:1 trades, and from our experience, that was a lot more profitable in the end.
