Whilst doing back testing of different systems, I found that that my edge is affected by reducing the stoploss. I may be doing the maths all wrong and I would welcome some discussion on it. But if you have a 2 pip spread and a 100pip stoploss and a 100pip take profit, then I work out that you need to be right 52% of the time just to breakeven and overcome the spread. Whereas if you have a 2pip spread and a 40pip stop and target you have to be right 55% of the time to breakeven.
What do you think?