Where do you prefer to put SL and TP in expert advisors - Ask or Bid?

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JDeel 2015.01.09 02:04
 

I need some opinions about this. Lets take a BUY trade for example, we know that it is opened at Ask price. Then, the question is where to put SL and TP if we want them to be 10 pips, and why?

SL should be at:

  1. Ask - 10 pips
  2. Bid - 10 pips

TP should be at:

  1. Ask + 10 pips
  2. Bid + 10 pips 

 

What about trailing stop, where should SL be?

  1. 10 pips behind Ask
  2. 10 pips behind Bid

My personal preference is Ask price for SL and TP, because I want all profits and losses to be 1:1 with the input values... as much as possible. If I say "My SL is 10 pips" I want to lose something like 10 dollars, not something like 11.5 dollars because of the initial spread. Not to mention what happens with these values when the spread is not fixed. The bad thing is that the chance to hit SL is bigger than the chance to hit TP.

If I use Bid price for SL and TP, then I have 50:50 chance of reaching either them, but the end result will be like 11.5 loss vs 8.5 profit, and always different if the spread is not fixed. 

Which way do you prefer? 

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