📊 When looking at the winrate and FGI data I shared earlier, the time-consuming part is not understanding whether FGI is high or low, but converting it into TP levels that fit each variation of a trading method.


Finding the optimal TP for each trader requires backtesting based on setup, timeframe, SL placement, SL adjustment, and exit rules. But if you need a simple starting point, these are the minimum TP levels I recommend for each FGI zone:
🤑 Extreme Greed | FGI ≥ 80: TP 1.47R is the breakeven level → Recommended minimum TP: 2.0R
🤤 Greed | FGI 60–80: TP 1.22R is the breakeven level → Recommended minimum TP: 1.7R
😐 Neutral | FGI 40–60: TP 1.21R is the breakeven level → Recommended minimum TP: 1.6R
😨 Fear | FGI 20–40: TP 1.11R is the breakeven level → Recommended minimum TP: 1.4R
😱 Extreme Fear | FGI < 20: TP 0.90R is the breakeven level → Recommended minimum TP: 1.25R
📌 These levels do not mean you must take profit exactly there. If your method expects a farther TP, you can aim higher, but you need to accept one fact: the farther the TP, the lower the actual winrate tends to be, because price has to travel further for the order to count as a win.
⚠️ On the other hand, setting TP below the recommended minimum is not ideal. When TP is too low to compensate for the probability of being wrong, the system will almost certainly struggle to generate sustainable profit over the long run.
📌 So treat these levels as a “minimum floor” for reference. You can raise TP higher, but you need to check whether the winrate after raising TP is still enough to preserve the statistical edge.
#TradingRisk
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