Here is a real example of where trying for a lot of pips relative to the number of pips risked makes sense.
the TRADEFINDER GBPUSD pair view for Tuesday August 27, 2019 was bullish.
- The strategy was to wait for the London opening (07:00BST) and then seek out a buy entry
- At 07:00BST GBPUSD was at 1.2218
- The overnight (22:00 to 07:00) low was 1.2209
- The prior day’s (Monday) low was 1.2208
Getting in (buy entry) at 07:00BST made sense because a stop below the prior day’s (Monday) low would be a meaningful stop and a good place to get out of the buy trade because the existing pattern of lower highs on the daily chart would be broken if Monday’s low was taken out on Tuesday.