Do you manage losers and let your winners run?
Think about this.
We take 100 trades. Every trade is a long with a 100 pip cease and 100 pip target.
50 transactions hit our target. 50 transactions hit our stops.
How many of the price paths that reach our stops were once profitable during it's way to the stop?
How many of the price paths that reach our targets were once losing on its way to the stop?
I believe it would be safe to assume 50%.
Thus 25 of our winner transactions were once losers and 25 of our losing transactions were at some stage winners.
Do you handle the winners and let the winners run?
Yes No... and Why?