The 1-Pip Question!

Man, can you imagine your retirement in one good GPB/JPY shot???

The only thing that is 100% sure when you push the button is the spread/commission you're going to pay...

with that amount of money to trade/risk on a trade. shouldn't you be sitting on a beach somewhere with a beer ,a laptop and make small profitable trades .....

i kno wat i would do........(pack my bags )

LOL

2 pip spread, 1 pip TP, 1 pip SL.

Hits SL every time you hit that button

^^^^^^ Broker's dream trader ^^^^^

Just got that! It's an epiphany! I GOT to be the BROKER!

Not a bad idea, hummmmm....

The probability of market moving 1 pip is greater then it moving 10 pips.


Best regards

Dale

It's not so much a matter of market movement as it is the direction.

I don't know too many polydirectional strategeis for forex which involve the same security.

swap, hang on GBP/JPY, 365 days a year, 2 pip a day, if not getting about 700 pips DD at end of year, it'll be fine

no the best you can do is very high probability. I reckon I could get a pip 1000 times out of a 1000 but not without risk, or some drawdown on open positions. with such a huge position size if the 1001 trade goes 50 0r 100 pips against and threatens your entire fortune your not going to hold it and you will take the loss. If you do not eventually, you are going to enter at a level that fails to achieve your pip and never comes back and completely guts your account. It cannot be done without this risk IMHO

hahahahahahah
this maked me laught

Very good !

Too many people throw out the quick answer of "Money Management" when asked what separates winners from losers.

There is much truth in that knee-jerk reaction. to a degree....

But money management doesn't have to be anything more than, "I will only risk 1/2% of my money on each trade regardless of other circumstances."

For the right system or method that may be very valid.

But for carry traders, situation traders, arbs-- these make up much more than 75% of the market by volume, that is not a valid answer to differentiate the winning class from the losing class.

The biggest hurdle to cross to get to the "winner" category is this: You need to find a way to trade consistently so that if you trade only one unit per trade, after all winners and losses are factored in-- that after 1000 trades you should have a net gain.

If you can find such a method, you now have something to build on. Then you can have a good idea of what the edge of your system is and then go about making some real money. You will already know the system's winning/losing profile.

To make just 1 pip-per-trade-for-sure, as this thread talks about, is definitely achieveable. But probably not the way most people would want to attack the problem. And if you eventually get good enough to pull it off you will find that you are throwing away the greatest potential the market offers to get that pip.

Not many people visiting this forum can accomplish the task of making a total of 100 pips of profit, one pip at a time before they blew out because of the market getting away from them. I guarantee that most would blow out before they had 50 trades.

I think everyone should open a sub-account at a place like Oanda, and fund it with $50. Try to make just one pip (at a minimum of $0.25/pip per trade). If you don't immediately get your 1 pip you should wait until you get your 1 pip or the whole $50 gets taken out. (This is risking approximately 200 pips to get the 1 pip)

I guarantee anyone doing this exercise will find out trading truths that they never realized before. The taking of many trades with a definite goal will be instructive to you.

I wouldn't recommend anything to others that I haven't done myself. Over the past 2 weeks I traded 505 times, using no stoploss with a position size of $0.25/pip; making a minimum of 1 pip each trade on a little $50 trading account on Oanda. I quit because the markets got too busy for me to keep it up -- and I thought I proved a point to myself.

I made a total of $192.73 profit on that $50 account for a total account size of $242.73. Fortunately for me, the Eur/Usd and the Gbp/Usd were definitely trending down, so that made my job a bit easier.

This isn't a jab at anyone or a chest-pounding statement of how good I am. Many of you could have done the same if they had started when I did.

I learned a volume of information from this exercise. I realized, yet again, why I do what I do in my main accounts--- hold on to winners, cut my losses on losers and push my big trades for even bigger profits. While I was taking a tiny pip in this exercise, my main account was sitting with single trade profits of 1000 pips in the pound and 700 pips in the euro. And there wasn't much initial risk when I placed those trades.

Many would say I was lucky. (Wouldn't be the first or the last time.)

And if you succeed in making 500 pips before getting that trade that just gets away from you, you will have the equivalent of a graduates degree in risk management.

The reason I find this one of the most interesting thread in FF is because the secret to the difficulty of extracting a "guaranteed" profit is the reason professionals make hundreds of thousands from huge moves that others are ignoring because they are trying for the "guaranteed" immediate gratification payment.

TheRealThing

mayby not - you will know the systems w/l profile for the past 1000 trades not the next. This is not a ticket to making serious money, this is nothing at all in trading. The market is ever changing, evolving to close inefficiencies.

not absolute truth - this is your secret, to suit your truth. There are as many ways to trade the market as there are traders.There are a large % of pro traders scalping the market just as effectively as those using your secret style. there are many ways to skin a cat. different strokes for different folks.

no risk at all ?
i don't think such a thing is possible.
100% no risk = a trader's dream.

BBPI_fxtrader

You are absolutely right.

There is no such thing as trading without risk, except demo trading. But perhaps demo trading even has risk because it subverts the learning process.

Demo trading teaches only demo trading.

And, M.A.C.Doug-- I am glad that "this is your market and you are unafraid!"

Now, should the rest of us be afraid?

There are numerous methods used by the few successful traders, but some styles are inherently more likely to be profitable than others. Scalping isn't the kindest style to most traders.

TRT

This is in response to a particular post in this thread, by Joel about two years ago.

Read this first:
http://www.forexfactory.com/showpost...7&postcount=30


I believe he is trying to convey the power of trends and trading with them.

In post #15, same thread, he also says this:

I have absolutely no doubt anyone with just a little thought could make a guaranteed 1 pip profit a year, a month, a week or a day. Then why do people find it so hard?

Forex brokers do it over and over, every trade. Ask: how do they do it?

Do the same thing they do, but on a different timeframe, or framework!


It would be very interesting to try and duplicate his results, even if one of us "mere mortals" could do half as well, we would still demonstrate a considerable edge with no drawdown.

I have the utmost respect for Joel Rensink, I can only hope to someday be 1/10th the trader he is, but...

I don't think TheRealThing actually did this experiment as he stated. The two second weeks of August in 2008, GBP/USD was trading at about 1.5600 and the EUR/USD was at 1.4700.

To even initiate a position (open the trade) at .25 per pip, the amount of money on deposit would've had to be at least $80 for the GBP/USD and $75 for the Euro. You need even more if you have to let them run more than 150 pips against you to avoid an early margin call (Joel was going to let them run up to 200 pips, though he never had a loser). Oanda's 50:1 margin was the same back then. You couldn't do this with a $50 account, you can't even open a trade.

You would also only be able to open 1 trade at a time, until maybe you had over 300 trades to double your money and had more margin to play with. Joel said he did 505 trades in two weeks? That's an average of 50 trades a day. If you did this 10 hours a day, that's 5 trades per hour. Possible, perhaps... but I can tell you, that you do NOT always get your 1 pip quickly, often times having to hold your trade for over 5-10 minutes.

He was trying to teach us something...mainly I believe it was about the power of trends and "fat tails".

"the secret to the difficulty of extracting a "guaranteed" profit is the reason professionals make hundreds of thousands from huge moves that others are ignoring because they are trying for the "guaranteed" immediate gratification payment."

But... how does perfecting an entry, so that you get 1 pip and not get margin called otherwise relate to this statement? -

"And if you succeed in making 500 pips before getting that trade that just gets away from you, you will have the equivalent of a graduates degree in risk management."

A question of my own:

Most pairs move 100+ pips every day.

How could you NOT make 1 pip per day?

G.

Making 1 pip per day isn't the problem, not losing >1 is!

But you go right ahead and try it, then come back and tell us how it worked out.

Well, the thread started last posted on June 24th, 2008.

It's now August 18th, 2010.

So there.

Yeah, and bredin posted 47 mins ago, so there!

the trade on GU i took about an hour and a half ago:

http://i33.tinypic.com/24cytle.gif

G.

That's great, congratulations, but what are we supposed to do with that information?