trader101 suggested to use 40pips for each pair as cut loss limit. I am not sure too. It depends on market condition but cut loss limit is a must have to protect your account.
Unfortunately, since we are not knowing the true perfect state, failed reversal happens (not all the time). Remember, it is only ideally for full reversal towards opposite side to happen.
Failed reversal also happens when you don't have a clear target price. Usually I uses combined trailing stop for protecting my gains.
Since you are master of your trades, you have to set your own target price. Fail to correlating with market condition is a weakness of T101 system.