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Is 5000 pips in 1000 trades a lot?

  • #1
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  • First Post: Feb 19, 2009 12:26am Feb 19, 2009 12:26am
Not if you trade GBPJPY - you just broke even....
  • #2
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  • Feb 19, 2009 12:43am Feb 19, 2009 12:43am
I don't understand the point or relevance of the question. Why do we wonder about 5000 pips?
  • #3
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  • Feb 19, 2009 1:58am Feb 19, 2009 1:58am
Quoting tdion
Not if you trade GBPJPY - you just broke even....
Technically, even less (assuming 7 pips spread).
You've just shared your profits with your broker 60-40.

Now, if trading 2 lots, 5000 pips is indeed, a "lot"...
  • #4
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  • Feb 19, 2009 2:13am Feb 19, 2009 2:13am
i was assuming a 5 pip spread, thus 5,000 pips puts you at a net 0 pips.

the point of this thread is, even if you have an edge, you have a lot to overcome.
  • #5
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  • Feb 19, 2009 7:34am Feb 19, 2009 7:34am
Quoting tdion

the point of this thread is, even if you have an edge, you have a lot to overcome.
Agreed. You also have to take into account slippage of 1 or 2 pips per trade as brokers will slip you whether or not they admit it. So for something like EUR/JPY or GBP/JPY you really want nothing less than a 10 pips avg trade for your sytem/method.

If you're trading something like gold with 80 or more pip spreads, it is a whole LOT more to overcome.
  • #6
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  • Feb 19, 2009 7:39am Feb 19, 2009 7:39am
counting pips made/loss as a measure of performance is stoopid

it's either % gain or $ gain..that's the bottom line
Working towards CME membership
  • #7
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  • Feb 19, 2009 7:56am Feb 19, 2009 7:56am
Quoting hilmy83
counting pips made/loss as a measure of performance is stoopid

it's either % gain or $ gain..that's the bottom line
I completely disagree. There is nothing wrong with looking into what you actually have to do to cover spreads and make money in this business.

You can't have $ without pips.
  • #8
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  • Feb 19, 2009 9:31am Feb 19, 2009 9:31am
Quoting tdion
i was assuming a 5 pip spread, thus 5,000 pips puts you at a net 0 pips.

the point of this thread is, even if you have an edge, you have a lot to overcome.
I place a trade pay 5 pips spread and earn 500 pips after the spread.
That's much to overcome?
If you scalp for 2 pips on GBP/JPY ... oh well maybe you should go and see a doctor.
  • #9
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  • Last Post: Feb 19, 2009 11:51am Feb 19, 2009 11:51am
Quoting Tjpld
I place a trade pay 5 pips spread and earn 500 pips after the spread.
That's much to overcome?
If you scalp for 2 pips on GBP/JPY ... oh well maybe you should go and see a doctor.
I don't think he was suggesting that you scalp for two pips on a pair with a 5 pip spread. I think he assumes you will win some and lose some, ultimately winning 5000 more pips than you lost after a series of 1000 trades.
Like if you had 505 winners of 500 pips and 495 losers of 500 pips. You would be ahead 5000 pips minus the spread. There are many ways to come up with a 5000 pip gain after 1000 trades besides scalping for two pips.
The point is that your edge has to be good enough cover expenses over time.
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