So when you backtested on an average how many points you received/trade when it went in your direction?

If you have a win ratio of more than 50% try to adjust your stop-loss that way, If you go into detail it means, to be profitable in the long run, you need to have a positive

**expectancy**. You can calculate your expectancy by multiplying your win rate, your average win size, and your risk/reward ratio.

Suppose the win rate is 63% your average win size is 200 rs, and your risk/reward ratio is 0.5, your expectancy is 0.63 x 200 x 0.5 = 63 rs. This means that on average, you make 63 rs on each trade with the help of your backtested data you can find this very easily right?

Now, to maximize your expectancy, you need to find the optimal balance between your win rate and your risk/reward ratio. Higher your win rate, the lower your risk/reward ratio can be, and vice versa.

For example, if you have a high win rate of 80%, you can afford to have a low risk/reward ratio of 0.25 (risking 100 rs to make 25 rs ) and still have a positive expectancy of 0.8 x 25 x 0.25 = 5 rs.

but if you have a low win rate of 40%, you need to have a high risk/reward ratio of 2 (risking 100 rs to make 200 rs) and still have a positive expectancy of 0.4 x 200 x 2 = 160 rs.

These calculations are just an example to play around with your numbers it doesn't mean you have to follow this and the market is Dynamic as you already know.

Yes these numbers are all based on zero emotions but we all know emotions are what we need to take care of first, anyways I wanted to add some value to your setup. Thank you for reading