Price Per pip

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Larry
1471
Larry  

This is driving me nuts, I have been looking for months now for an existing algorythem that does nothing more than calculate the Price Per Pip, regardless of the pair it is on. I have found 2 really good money management strategies that are both dependent upon this value as a way to precalculate trade sizes and money risk management, but I cannot find a single example of a calculation that handles Price Per Pip.

I am willing to offer my money management system to you in exchange for this in a function. I will provide you with both of the techniques suggested by the mentors I have been working with.

cameo
476
cameo  
LEHayes, Are u not talking about MODE_TICKVALUE ?
Larry
1471
Larry  

I am not sure if I am on the right track, but here is what I have put together so far.

double GetPPP()
{
   return (((PipPoints/Bid)* MarketInfo(Symbol(),MODE_LOTSIZE)) * MarketInfo("EURUSD",MODE_BID));
}

From another web site the calculation was something like:

(.0001/{current pairs price})*{contract size, ie 100,000; 10,000, etc} = {some value} * {USD price} = Price Per Pip

Explained from this extraction:

The formula to calculate forex pip value is to take one pip and divide it by the price of the currency pair value and then multiply it by one unit which is 10000. You then need to change it to the USD so you multiply it by the current price. For Example Using the USDCAD

(.0001/1.2148) X 10000 = .8232 X 1.2148 = $1.00

You will always see that with any currency pair the pip value is always $1.00 per 10000 currency units. You may think that this value is very low. However you need to take into account that currencies are traded in lots of $100,000.00 which is $10.00 per pip. When you purchase one lot for $10.00 and the currency increases by 3 pips you have gained $30.00.

[Deleted]  
LEHayes:

This is driving me nuts, I have been looking for months now for an existing algorythem that does nothing more than calculate the Price Per Pip, regardless of the pair it is on. I have found 2 really good money management strategies that are both dependent upon this value as a way to precalculate trade sizes and money risk management, but I cannot find a single example of a calculation that handles Price Per Pip.

I am willing to offer my money management system to you in exchange for this in a function. I will provide you with both of the techniques suggested by the mentors I have been working with.

Attached is a little script I developed that might answer your question.

Because scripts have no "extern" parameters, you have to change them in the code and recompile.

Just load into your experts/scripts folder, compile, and attach to a chart.

Let me know how it goes, Helmut

Files:
lots_1.mq4 2 kb
Larry
1471
Larry  

In addition, I understand that to be accurate, I would not need to change it to the USD if the deposite Pair was USD. I think Deposite is the first of the pairs.

I don't know their formula does not look right either. They are talking about the USDCAD as the pair trading, then they use it's value as the USD representation as well, so a little confusing.

As for the TICKVALUE, I got an output on it and for the EURUSD, leverage 100:1, 100,000 lotsize, I got 1, for GBPUSD I got 1, for CHFJPY, I got 10.77.

Larry
1471
Larry  
engcomp:

Attached is a little script I developed that might answer your question.

Because scripts have no "extern" parameters, you have to change them in the code and recompile.

Just load into your experts/scripts folder, compile, and attach to a chart.

Let me know how it goes, Helmut


I tried the script, but I don't know if we are talking apples to apples and oranges to oranges. The script appears to be attempting to determine lot size, and stop loss size, which isn't bad, but I just want to be able to determine what the cost of a single pip would be on any given pair it is dropped on.

I think the function I put together is on the right track, but I know there is something out there about if the deposite currency is in your trading currency, this is to say, I am in USD, so if the deposite currency is not USD, I do not need to calc it against the USD, if it is then I do not need to calc it against the USD (the last part of the caculation I showed earlier). Now another thing, is in most conversations I read, it simply says USD, would that be assuming that they mean EURUSD as I did in my calculation or do I need to do some kind of calculation to get the current USD only value?

[Deleted]  

LEHayes, we already went through this (the use of TickValue and TickSize ratio) when you were sending me private messages. Have a look through the forum for a thread named "What Is A Tick?".

CB

Larry
1471
Larry  

Also note, there is no calculation for leverage here or the lot size I am considering for my trade. don't these values come into consideration when determining a pip value, or Price Per Pip?

Larry
1471
Larry  

CB, this is the reason why I am back to getting to the root of this. When I do the search as you suggest, there are over 2800 forum threads alone, somehow realated to this. I have read threads on a contraversy of whether a tick is actually a pip or that is should be treated differently because a tick is when the broker chooses to update your MT4, it does not dictate that a tick will be an update every pip. Therefore the arguement goes on to state that it was an un reliable source for getting a pip value.

With the conversation you and I were having, I got totally lost in what needed to be done. I still to this day do not know if what you had told me to do would actually get me the pip value or if it was an incomplete process you where having me work through. I guess I did not understand enough of what you were expressing to understand what I was doing.

I will review our messages to see if I missed something.

[Deleted]  
LEHayes:


I tried the script, but I don't know if we are talking apples to apples and oranges to oranges. The script appears to be attempting to determine lot size, and stop loss size, which isn't bad, but I just want to be able to determine what the cost of a single pip would be on any given pair it is dropped on.

I think the function I put together is on the right track, but I know there is something out there about if the deposite currency is in your trading currency, this is to say, I am in USD, so if the deposite currency is not USD, I do not need to calc it against the USD, if it is then I do not need to calc it against the USD (the last part of the caculation I showed earlier). Now another thing, is in most conversations I read, it simply says USD, would that be assuming that they mean EURUSD as I did in my calculation or do I need to do some kind of calculation to get the current USD only value?

I am not sure how to take this. It is on the borderline of being annoying.

LEHayes, if you have a look you will see that "stop loss size" is one of the inputs, NOT what the script attempts to determine.

Also, the script does not "attempt to" but does determine the lot size based on the stop loss and risk percentage you determine.

Finally, the tick value it returns is in the currency of the account. To translate that into your currency is up to you.

gordon
2325
gordon  
Price-per-pip or price-per-point? If the former, than this is relevant -> https://www.mql5.com/en/forum/124692, discusses how to determine the size of pip (in points) for a symbol...
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