All,
let me start by saying that I don't have the knowledge of a mathematician's little finger which is why I am posting this thread. I am interested in gathering the following information:
1. Is this even possible?
2. If possible, how probable?
3. The process of how/when the pip/lot values change to achieve the end result (this will become clear further on)
Lets assume the following for simplicities sake:
1. we reach our goal of 20 pips per day every day.
2. All things are equal, no huge news trades, no forgetting to put a stop on and blowing half your account etc.
3. We are observing all the rules of good money management, risk and dicipline
4. No money is ever taking out of the account by the trader.
Attached is an .xls of compound interest. The starting balance is $5000. The compound interest is 1% per day (I didn't create this BTW. I found it on one of the threads here). The time line is 4 years. The aim per day is 20 pips on any currency. The above are all variables but lets try to keep the end result at $60,000,000. My questions are:
1. If you know the pip value of your currency pair, how many pips would you have to make per day to achieve 1% every day? Obviously this changes as the account size increases as does your ability to trade larger lot sizes with a safe risk (1% - 2%)
2. If you did achieve 1% every day at what points along this process would you have to change your pip/lot amount to sustain the 1% growth.
The end result should be an additional column next to each month in the .xls stating how many pips you would need to make on that day to maintain the 1% growth, which would also translate into lot size. It would be awesome if you could change the value of the lots/pips based on a choice of currency, the same way the dollar value changes if you change the percentage or starting price. For example if you chose EURUSD the pip value in the columns would change to reflect the new currency pair as each pip value in each currency is different.
Thanks in advance to all those mathematical super geniuses that CAN actually work this kind of stuff out.
let me start by saying that I don't have the knowledge of a mathematician's little finger which is why I am posting this thread. I am interested in gathering the following information:
1. Is this even possible?
2. If possible, how probable?
3. The process of how/when the pip/lot values change to achieve the end result (this will become clear further on)
Lets assume the following for simplicities sake:
1. we reach our goal of 20 pips per day every day.
2. All things are equal, no huge news trades, no forgetting to put a stop on and blowing half your account etc.
3. We are observing all the rules of good money management, risk and dicipline
4. No money is ever taking out of the account by the trader.
Attached is an .xls of compound interest. The starting balance is $5000. The compound interest is 1% per day (I didn't create this BTW. I found it on one of the threads here). The time line is 4 years. The aim per day is 20 pips on any currency. The above are all variables but lets try to keep the end result at $60,000,000. My questions are:
1. If you know the pip value of your currency pair, how many pips would you have to make per day to achieve 1% every day? Obviously this changes as the account size increases as does your ability to trade larger lot sizes with a safe risk (1% - 2%)
2. If you did achieve 1% every day at what points along this process would you have to change your pip/lot amount to sustain the 1% growth.
The end result should be an additional column next to each month in the .xls stating how many pips you would need to make on that day to maintain the 1% growth, which would also translate into lot size. It would be awesome if you could change the value of the lots/pips based on a choice of currency, the same way the dollar value changes if you change the percentage or starting price. For example if you chose EURUSD the pip value in the columns would change to reflect the new currency pair as each pip value in each currency is different.
Thanks in advance to all those mathematical super geniuses that CAN actually work this kind of stuff out.
Attached File(s)
Compound interest.zip
309 KB
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