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calculation of pip profit?

  • #1
  • First Post: Jan 8, 2011 4:20pm Jan 8, 2011 4:20pm
Im cout up in a calculation that i can not solve please help


a signal service has trades with 2 targets the first taget u take of half of your position and move stop to break even on the second half of the position and then aim for the second target. you also have a stoploss here is an example.


buy 1000 tp1 1100 tp2 1200 sl 900




after a week trading i get several trades that just go to the first target some to target 2 and some get out stopped.


how do i calculate how mutch real pip i get ? remember the stoploss takes out the whole position while only half of the position is going for target 2.


I hope you understand my questions and can show me how to calculate it ?


best regards
  • #2
  • Jan 8, 2011 8:19pm Jan 8, 2011 8:19pm
Quoting jgadefelth
Im cout up in a calculation that i can not solve please help


a signal service has...
Seeing as how english does not seem to be your first language this may take a bit of clarification and that is completely alright.

Now, Calculating pip movement is done by figuring out the differance of the where you bought and sold. e.g. bought at 1.5502 and sold at 1.5532 would be a 30 pip move, pretty simple.

Although I do believe you may be asking how many pips it is on something smaller than a lot and that is also a simple answer, they are jut the same as if they were a smaller lot. All a pip is is a 'Percentage in points' and all that really is is a measurement of how much the market has moved.

I hope I have somewhat helped you out here. Please reply with a clarifying post if you need more help.
  • #3
  • Jan 9, 2011 8:31am Jan 9, 2011 8:31am
Quoting jgadefelth
Im cout up in a calculation that i can not solve please help


a signal service has trades with 2 targets the first taget u take of half of your position and move stop to break even on the second half of the position and then aim for the second target. you also have a stoploss here is an example.


buy 1000 tp1 1100 tp2 1200 sl 900




after a week trading i get several trades that just go to the first target some to target 2 and some get out stopped.


how do i calculate how mutch real pip i get ? remember the stoploss takes out the...
Ill give it a stab:

Outcome 1: both tp hit would result in 1 position paying 100 pips, while the 2nd position pays 200 resulting in a 150 pip move (100+200/2 positions)

Outcome 2: 1st take profit hit, 2nd BE taken out would result in 50 pip (100+0/ 2 positions).

Outcome 3: Both positions take out SL 100 pips (2x100/2)

So if you risked 5% on a trade and split in 2, your positions would equal approx 2.5% (not accounting for variables)

Outcome 1 would net you 7.5% with position 1 hitting 1:1 (2.5%) and position 2 hitting 2:1 (5%)
Outcome 2 would net you 2.5% with position 1 hitting 1:1 (2.5%) and position 2 getting BE (0%)
and outcome 3 would net a loss of 5% with both trades hitting the full SL value at 1:1 (-5%)

Hope this helps. It is late a night so I apologise if I have made an error.

RT
  • #4
  • Last Post: Jan 9, 2011 9:55am Jan 9, 2011 9:55am
Quoting jgadefelth
Im cout up in a calculation that i can not solve please help


a signal service has trades with 2 targets the first taget u take of half of your position and move stop to break even on the second half of the position and then aim for the second target. you also have a stoploss here is an example.


buy 1000 tp1 1100 tp2 1200 sl 900




after a week trading i get several trades that just go to the first target some to target 2 and some get out stopped.


how do i calculate how mutch real pip i get ? remember the stoploss takes out the...
Different traders count pips differently for whatever lots he takes.2 or more position at same entry should not increase the pips , rather they can be taken as single .

Do hit 100 pips sl , loss 100 pips but manage take profit half at + 50 & rest hit sl at be then total gain 50 pips with risk of 100pips loss .
if half at 50 pips & rest half at 100 pips tp2 then also pips gain should be only 100 but profit less than you risked originally.
so you are risking 100 pips all the time but may not gain 100pips many times , that is r:r less 1:1 on average . bad signal to deal with .They are not so sure about the movement .
fontu
Not understand?better not follow my analyses!doubt clearer first, risks ++
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