Money Management and Stop Loss higher than Profit Take?

[europound]

If SL is bigger that TP then MM breaks down?
TP has to be bigger than SL?
I did Monte Carlo test and when SL is bigger than TP then equity is really not growing and often times even breaks down :/
is this about so called math expectancy?

 

[Enivid]

This all depends on the win probability you have. So, yes, math expectancy matters here.

 

[danielbro]

Like the user said, it is basically math expectancy. You can try out a demo trading and see if the results can be obtained.

 

[Akwin]

Greetings,

Hope all is good.

I am thinking about setting a TP much further away than my SL is set. The theory is that you will trigger the SL a lot but only lose a small amount but when you hit the TP you will make up for it. I saw some futures traders doing this on CNBC. Wandered if anyone has tried this

Regards,
Akwin