Equilon FX1. The thesis and trigger
Suppose EUR/USD has pulled back toward a previously defined support area. The scenario considers a long entry only after the trader’s confirmation condition has been met.
A complete live post would state that condition precisely: which timeframe, what price behaviour and when the setup expires. Without that information, an entry number is incomplete.
2. Entry, invalidation and objective
| Part of the plan | Price | What it means |
|---|---|---|
| Entry | 1.0800 | The reference entry if the condition is met. |
| Invalidation | 1.0770 | The planned stop is 30 pips below entry. |
| Objective | 1.0860 | The hypothetical objective is 60 pips above entry. |
3. Planned reward and risk
For this EUR/USD example, one pip is 0.0001. The entry-to-stop distance is 0.0030, or 30 pips. The entry-to-objective distance is 0.0060, or 60 pips.
60 ÷ 30 = 2
The planned reward-to-risk ratio is 2:1 before costs. This ratio says nothing about the probability of reaching the objective.
Cash exposure depends on position size, account currency and execution. Spreads, commissions, financing and slippage are not included in this simple distance calculation. No personal position size is suggested.
4. More than one possible outcome
- No trigger: the idea never becomes an entry.
- Invalidation: price reaches the stop area; actual execution may differ.
- Objective: price reaches the planned exit area.
- Change of plan: an update explains a cancellation, early exit or adjustment.
The dashed path in the illustration shows only one possible scenario. It does not imply that the favourable outcome is more likely.
5. What a useful review includes
Read the original timestamp, actual entry and exit, costs, any size changes and the reason for each decision. Separate the quality of the process from whether this particular trade made money.
Keep simulated examples distinct from live trading. A selected example cannot establish a track record.