How Many Pips Per Month Is A Great Result? - page 10
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it's really not important how many pips a day you make and it's a bad thought process to approach the markets with.
thinking like this can lead you to trade the market on days the market should be avoided.
Actually, it's better the other way around. Someone who trades once a month but with larger lots is more likely to succeed over someone who trades once a day all things being equal.
why? because the person who trades once a month, pays the broker commission and spread once
Anything over 5 % per month on a regular basis (on average for 1 year or more) is a very good return. Apart form the monthly profit, the other aspect to look into is the amount risked per trade in terms of %. It means that how much drawdown is gone through for this profit. A trader might be making regular profit of 5% per month but the position is not closed even with drawdown of 50% while another trader is making 2% profit per month but is only taking maximum of 10% drawdown per trade. The later trader should be preferred over the first.
Hi jamespolis, If I can help you a little bit then that is not the correct question you asked. The amount of pips one makes is of no importance. It is the amount of pip one makes devided by the risk he took that is important. Or better known as reward/risk ratio. I gonna try to explain myself with 2 extreem examples. Extreems have the tendency to picture it better. Lets say that someone makes an average of 1000pips per month (again it is an extreem example) but he has on a regular base in between drawdowns of 500 pips. That means that his reward is 2 x the risk he is exposed to. That means he will need to place his value per pip in such a way that if he looses 500pips that he does not burn his account. An other guy makes makes daily ONLY 5 pip and never has any losses ( again also here impossible but only as an extreem example). That means that he only makes +/-100 pips in a month but he does not have any draw down. But that also means he does not have any risk what so ever. That means he can boost up his value per pip to the absolute maximum. Every day he can trade with everything he owns in his life. The guys who makes only 100pips in a month is going to make a lot more money then the guy who makes 1000pips per month because he needs to take in account that he can also have temporary drawdowns of 500pips. To answer your question or try to help you is that you always need to look what the risk (drawdown) is of a praticular system in relation to the profits (reward) it makes. And most amateurs fail on this. They only look to the profits a system makes and place their leverage and value/pip in such a way that this would make them rich in no time. But the moment they face a bad period or serious draw down they burn half or compleet their accounts. If you find yourself a system with a reward/rsik ratio between 2 and 5 over a longer period of trading (normally R/R ratio are calculated on a 3 year period) then you found yourself a good system. That means if you trade of a 10.000$ account and if you have a system that has a R/R of 5 that you will need to place leverage and value per pip in such a way that if you loos or have a drawdown that you don't loos more then 25% of your account. That means that your end result at the end of the year will be 5 x as bigg as the risk that you took. That means 25 X 5 = 125% profit. That is extreemly good. You will find some people who say or show these kind of results over a 1 month period. But ask them to show these results over a whole year and they will faill completely in doing so. Because they are way over-leveraged and the moment they encounter a bad period their account is burned. Systems or people who claim that they would have a R/R ratio over 1 year period of 10 do not exist and I can only sujest to stay away from them. They are only theoretical and based on over-optimized back test. friendly regards...iGoR
What a wonderful explanation of how to review one's account for both the risk taken and reward earned - it gives a whole new slant to understanding what really constitutes sustainable trading.
What a wonderful explanation of how to review one's account for both the risk taken and reward earned - it gives a whole new slant to understanding what really constitutes sustainable trading.
Hi jamespolis,
If I can help you a little bit then that is not the correct question you asked.
The amount of pips one makes is of no importance.
It is the amount of pip one makes devided by the risk he took that is important. Or better known as reward/risk ratio.
I gonna try to explain myself with 2 extreem examples. Extreems have the tendency to picture it better.
Lets say that someone makes an average of 1000pips per month (again it is an extreem example) but he has on a regular base in between drawdowns of 500 pips. That means that his reward is 2 x the risk he is exposed to.
That means he will need to place his value per pip in such a way that if he looses 500pips that he does not burn his account.
An other guy makes makes daily ONLY 5 pip and never has any losses ( again also here impossible but only as an extreem example).
That means that he only makes +/-100 pips in a month but he does not have any draw down. But that also means he does not have any risk what so ever.
That means he can boost up his value per pip to the absolute maximum. Every day he can trade with everything he owns in his life.
The guys who makes only 100pips in a month is going to make a lot more money then the guy who makes 1000pips per month because he needs to take in account that he can also have temporary drawdowns of 500pips.
To answer your question or try to help you is that you always need to look what the risk (drawdown) is of a praticular system in relation to the profits (reward) it makes. And most amateurs fail on this. They only look to the profits a system makes and place their leverage and value/pip in such a way that this would make them rich in no time. But the moment they face a bad period or serious draw down they burn half or compleet their accounts.
If you find yourself a system with a reward/rsik ratio between 2 and 5 over a longer period of trading (normally R/R ratio are calculated on a 3 year period) then you found yourself a good system.
That means if you trade of a 10.000$ account and if you have a system that has a R/R of 5 that you will need to place leverage and value per pip in such a way that if you loos or have a drawdown that you don't loos more then 25% of your account. That means that your end result at the end of the year will be 5 x as bigg as the risk that you took. That means 25 X 5 = 125% profit. That is extreemly good.
You will find some people who say or show these kind of results over a 1 month period. But ask them to show these results over a whole year and they will faill completely in doing so. Because they are way over-leveraged and the moment they encounter a bad period their account is burned.
Systems or people who claim that they would have a R/R ratio over 1 year period of 10 do not exist and I can only sujest to stay away from them. They are only theoretical and based on over-optimized back test.
friendly regards...iGoRCorrect. Don't ask someone about pips per month/day. Ask him about his R/R Ratio, his winning rate(!, 1:5 is worthless if you loose 10x more often than win), his (proven over a longer period, so not theoretically calculated) annual return in % with that.
Everything including spreads, commissions, etc., of course.
And even then you can only trade a strategy if it fits to you.(psychological pains, time input, belief & trust in your strategy and your abilities..)
If target a day is 20 pips, so a month 20*25 day = 500 pips. I think this target is easy to achieve, but after all still need best strategy and need best effort too. Small scoup of target is daily, because we can carefully to open order.
[lang=fr]Salut en fait tes gain son en fonction de ton bujet.
Example tu a 5000 de bujet il tes facil de jouer des mise de 500x400 avec un bon stop loss pour fair en 1 heure 500 $
Si tu a example 100, tu peut jouer 10x400 et fair 10 en 1 h, le trading ses simple , plus tu est riche , plus tu a la possibiliter de fair beaucoup d'Argent.[/lang]
100 to 150 pips per month will be a good decision even it depends on several factors means account size etc.
As long as my signal providers give me a monthly 200-250 gain i'm staying on the happy side.
1200 pips
I would like to get some indication of many pips per month generated is a great result? I am not concerned with lot size but would like to get a rough idea of what amount of pips per month would be average, great and outstanding...I would appreciate any guidance. Thanks James
as for you asking how much pips in a month considering that your not a beginner
1200 pips in a month that will be 60 pips a day.
as for you asking how much pips in a month considering that your not a beginner 1200 pips in a month that will be 60 pips a day.
1200 pips in a month? is that too low or too big for a middle trader? What would be the best exact pips in a month for the middle trader?