Grey 1-
Quote: This is also true when traders use 1ATR for their stop loss, which means there is around 1.5 times more chance of hitting their stop before becoming profitable...
Sorry, I don't understand this, especially the 1.5 bit (or are you referring to the 30%-50% eg above?).
If I my stop at 1 ATR from entry, and my profit target at 1 ATR away from entry, then I would assume my chances of profit or loss are 50-50 assuming random entry in a non trending market. HOWEVER, if I take care in my entry - chose a trending market, then I would hope that my chances of hitting the 1 ATR target are higher than hitting the 1 ATR stop? (assuming the target is in the same direction as the trend)
Therefore, what if I was to trade in a trending market, have my stop say 1 ATR away, and my target 2 ATR away. Assuming I trade in the same direction as the trend, this should win 50% of the time minimum?