M5 · L5London Open Strategy
Stop Loss and Take Profit Rules
Where you place your SL and TP is just as important as where you enter.
What This Means
For the London Open setup, your stop loss always goes below the sweep wick (for buys) with a small buffer. Your take profit targets the next significant level — either the Asian High being swept from below, the previous day's high, or a clear supply zone. You always target minimum 1:3 risk-reward. If the structure doesn't offer 1:3, you skip the trade.
Visual
The Rule
SL: below the sweep wick + 5 pip buffer. TP: next liquidity or structure level. Minimum 1:3 RR.
If RR is less than 1:3, close the platform.
COPY THIS
Do these steps exactly1
After confirming your entry, calculate your stop loss first:
2
For a buy: find the lowest wick of the sweep candle
Place SL 5 pips below that wick
3
Calculate your risk in pips
Example: entry at 2320, SL at 2315 = 5 pip risk
4
Find your take profit target: the next swing high or key level
5
Calculate reward in pips
Example: TP at 2335 = 15 pip reward
6
Divide reward by risk: 15/5 = 3.0 RR
If ≥ 3.0 → proceed. If < 3.0 → no trade.
Common Mistake
Don't move your stop loss to breakeven too early. Give the trade room. If your SL is placed correctly, price should not return to it.