How Many Pips Per Month Is A Great Result? - page 7
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Mp -- a revisit
To restate for Igor's benefit, MONEY is what counts no matter what but pip count, assuming there is any stability to how you trade is a STATISTICAL COMPARISON method of your trading progress over time.
If when starting out, you can only make 100 pips daily on GU and you continue to trade GU for 6 months, maintaining the same lot amount per trade, INCREASING PIP COUNT is an immediate measure of your learning progress and not to be ignored.
But in real life, as in most things, its the MONEY that counts --- the statistics are simply to see how well the business itself is doing.
Most of you are probably new or recent traders (the post below this one where $1000 is enough to live for a month---THAT will certainly change !) ---- the distinctions i make will become MUCH clearer a year or two down the road and definitely 5 years down the road.
enjoy and trade well
mp
I prefer sum money no pips
I am new in forex trading (3 weeks live trading with 6 month demo trading), but I have my opinion to this question ...
If you have system with trading the same pip value every single trade, then you can measure in pips. But if you start trading advanced systems (position sizing depends on actual market factors and probability of the comming trade and others) then the only one measurement factor are money (ROI%).
I prefer measure with AVG daily ROI%. Now I am trading with same x$ pip value to be able sum pips also. I have plan to earn every day only 0.25% of my initial investment. It is 50% percent per year, great for me ! I have no problem to do that, now I beat my plan - doing average 0.5% per day
My trading so far: Only 9 days of intraday trading from those 3 weeks. Only one day of loss (-0.57%). Others are profit days. Max DD% was 1.5%. I have 80% percent of profit trades. And results in pips for pip-fans ... I earned 133 pips in 3 weeks.
One more comment. Pip value is not the same for all pairs -> How can I decide how much money to invest to your pip strategy to earn 10% monthly (hmmm) ?
And the answer is - ROI% is the winner, because ROI% is a good way to earn money. I need money no pips.
mi
.................
And the answer is - ROI% is the winner, because ROI% is a good way to earn money. I need money no pips.
miHi Minvest,
ROI% is not the most important technical characteristic.
Because you can start with 10K$ and at the end of the year you are at 15K$.
Then you will say I have a ROI% of 50 that is nice. OK I will say but lets have a look to your anual R/R ratio....and what do we see that at some point you had also a Maximum draw down of 5K$ before ending at 5K$ profit.
That means that your R/R ratio is 1 (the same risk as reward). That means also that it could be that you were over-leveraged and if not it means that there was definatly no room to take more weight on your postion size.
Now lets look to an other system that I would show you: It started off also with 10K$ and at the end of the year it sits at 14K$. You will say that is a less ROI% as your system.But if we look to the Maximum draw down then it was at some point 1K$. That means that the anual R/R ratio is 4 (4 x times more profit then the biggest risk it took).
Now that means the 2nd system could multiply its contract size 5 x times to have the same risk as you took. But that means also that then I can multiply the profit by 5 and then I end up with a profit of 200%.
Remember for the rest of your trading life that R/R ratio is THE most important technical characteristic to look for ( do not confuse the R/R ratio on a single trade with the anual R/R ratio also called sterling ratio).
Because the anual R/R ratio will also give you the information how big the contract size is you can use and how big the risk is that you need to take in account and what your +/- profit will be at the end of the year ( all elements that you can not find in a ROI%).
Friendly regards...iGoR
Hi Minvest,
ROI% is not the most important technical characteristic.
Because you can start with 10K$ and at the end of the year you are at 15K$.
Then you will say I have a ROI% of 50 that is nice. OK I will say but lets have a look to your anual R/R ratio....and what do we see that at some point you had also a Maximum draw down of 5K$ before ending at 5K$ profit.
That means that your R/R ratio is 1 (the same risk as reward). That means also that it could be that you were over-leveraged and if not it means that there was definatly no room to take more weight on your postion size.
Now lets look to an other system that I would show you: It started off also with 10K$ and at the end of the year it sits at 14K$. You will say that is a less ROI% as your system.But if we look to the Maximum draw down then it was at some point 1K$. That means that the anual R/R ratio is 4 (4 x times more profit then the biggest risk it took).
Now that means the 2nd system could multiply its contract size 5 x times to have the same risk as you took. But that means also that then I can multiply the profit by 5 and then I end up with a profit of 200%.
Remember for the rest of your trading life that R/R ratio is THE most important technical characteristic to look for ( do not confuse the R/R ratio on a single trade with the anual R/R ratio also called sterling ratio).
Because the anual R/R ratio will also give you the information how big the contract size is you can use and how big the risk is that you need to take in account and what your +/- profit will be at the end of the year ( all elements that you can not find in a ROI%).
Friendly regards...iGoRHi iGoR,
thank you for your anaswer - I understand you very well. I have more strategies and some of them are riskier then the others. I balance risk by using those strategies more riskier and less riskier. That is my way how to manage the risk. The second is focusing on intraday trading and be in profit every and every day. The overall testing for 6 month of demo trading I was more then 80% in daily profit.
Regards.
2000pips
2000PIPS
dunno, what's your DD and ROI and profit factor? i use those to determine the worth of a way to trade as a business, not pips.
also, different pips on different currencies are worth different amounts of money. so it's not that accurate really.
1000 Pips per month
Sorry to interfare, i remember seeing an indicator online somewhere, the author claimed to make more than 1000 pips per month with his tool. maybe you can google search "1000 Pips Month" or similar to this. Wish you best luck!!
Also account size does matter, with decent amount in capital i would really be happy just by 400-700 pips a month no big deal as i still earn quite good now!!
best wishes
It looks good.