What is the best minimum percentage target for intraday?
Depends on the Volatility of the Stock.
0.3 - you will never hit sl - I assure
Where your SL is? @Laxmi_Narayan_Mahato
Depends on the time frame and the type of trading style.
Are you a scalper?
Are you a set and forget algo based trader?
If you are a scalper, 0.35 for target and SL.
If you are a set and forget trader, don’t keep a target, simply trail your losses with an initial stop loss of slightly short of 1 percent.
Thank you very much @Joe_Chris for your to the point answer.
One method would be to use ATR based targets. Steps would be:
- Determine the candle timeframe you use to take the position,
- Calculate the ATR for the above candle time frame (ATR period could be 14/20)
- Use multiplier to the ATR, usually range from 2.5 - 4. Meaning your target would be 2.5 - 4 times ATR
- Target = Buy Price + (ATR *2.5) for long; and for Short it would be Sell Price - (ATR * 2.5)
It would be good idea to backtest your strategy and get the ideal multiplier which maximizes profit.
Using ATR would set different target levels based on the volatility. Higher the volatility higher would be the target and vice versa.
Thank you very much @Inuvest.tech for your detailed & step by step reply.