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More Pips Vs. Safe entries

  • Poll

  • More pips or safest entries?
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  • #1
  • First Post: Edited Dec 9, 2011 1:19pm Dec 8, 2011 3:17pm | Edited Dec 9, 2011 1:19pm
Hi!

Let say we have 22 entries in 1 year, 18 wins / 4 losses, and 3500 pips earned.

With a little modification on the System we have the same entries, but 21 wins /1 loss, but 2800 pips.

In your opinion, Do you sacrifice some pips, by having safest entries?

Thanks all for take the time to read this.
  • #2
  • Dec 8, 2011 5:54pm Dec 8, 2011 5:54pm
It depends but if each pip = the same ammount of $ then I'd choose the one that gives me more pips.
  • #3
  • Dec 8, 2011 6:34pm Dec 8, 2011 6:34pm
you never know...
Forex is risky enough so i'd prefer to go with a safer strategy, 2800 pips is not a bad result.
Think twice before going live, even if you own the best trading strategy...
  • #4
  • Dec 9, 2011 4:28am Dec 9, 2011 4:28am
Quoting LicTete
It depends but if each pip = the same ammount of $ then I'd choose the one that gives me more pips.
My pip value depends on MM, not fixed.
  • #5
  • Dec 9, 2011 4:34am Dec 9, 2011 4:34am
Quoting FxMaestro
you never know...
Forex is risky enough so i'd prefer to go with a safer strategy, 2800 pips is not a bad result.
You always feel tempted to make more and more pips, but I think having a good MM, and a safe strategy, more likely to stay in the game longer.
  • #6
  • Dec 9, 2011 5:00am Dec 9, 2011 5:00am
Another point is the psicology ...

We all know that in the game there are losses and we must face it without fall down, and trust in our strategy. All this is fine in theory.

If someone makes between 5 / 10 trades per day, the problem of losses, psychologically speaking, is lower, if the strategy is good, as it quickly retrieves it.

But what happens with long term strategies?. In this case, after a loss, it could be 3, 4, 7 days until the next signal, which could also be a loss. Say you need a lot of patience and constancy, for not getting tired or frustrated and change strategy quickly.
  • #7
  • Dec 9, 2011 5:06am Dec 9, 2011 5:06am
Quoting Kfx
In your opinion, Do you sacrifice some pips, by having safest entries?
Safest entries ??
well i think there is no one can exactly know that one entry is the safest entries. no one know this okay.

we can do analysis but the market will judge it.
market move in a pattern but move in randomly.
sometimes in one case, we know that if price touch some psych level it will reverse.but the price not even reverse otherwise it break that level .
Sometimes the worse trading setup gives the best result. and sometimes the best trading setup gives the worse result.

sacrifice some pips to get the long run position.
cut the losses short, and let the profit run. remember
The huge profit will compensate the loss.

p.s if you wanna trade base on pips, then you must have a fix lot, for example use 1 mini lot in every trade. and the maximum loss for example 50 pips. and let the profit run, run greater than 50 pips.
- 888 Horse Power - Fast Momentum Speed Run Towards VICTORY
  • #8
  • Dec 9, 2011 9:58am Dec 9, 2011 9:58am
Quoting Du Jin Shan
Safest entries ??
well i think there is no one can exactly know that one entry is the safest entries. no one know this okay.

we can do analysis but the market will judge it.
market move in a pattern but move in randomly.
sometimes in one case, we know that if price touch some psych level it will reverse.but the price not even reverse otherwise it break that level .
Sometimes the worse trading setup gives the best result. and sometimes the best trading setup gives the worse result.

sacrifice some pips to get the long run position.
cut the...
Thanks for you replie!

Yes, you are right, nobody knows but that's because we use our strategies, to determinate the good or bad entries. Nobody wake up in the morning and think "If my soccer team lost today, them I buy, if win I sell ..." .... Ok, maybe somebody do that

Same thing when you are in front of your screen waiting for a signal ... Maybe you can enter the market before the price brokes some level and anticipate ... Or maybe you can wait to the price broke and have a "safest" entrie ... Maybe you lost, maybe you win, but you are folowing your system. If you don't believe in your system, them better don't play.

Personally, I'm not use fix lotes in my main system, because is based on W/L trades ratio 1:1, thats because I use 3% of my account depending of the stop. Probably I'm wrong.
  • #9
  • Dec 9, 2011 10:01am Dec 9, 2011 10:01am
Quoting Kfx
My pip value depends on MM, not fixed.
then you just answered your own question. Less losses mean that each new trade will yield the same % (approx) butsince this is a compunding game go with the safest route.
  • #10
  • Dec 10, 2011 12:43pm Dec 10, 2011 12:43pm
Quoting Kfx
Hi!

Let say we have 22 entries in 1 year, 18 wins / 4 losses, and 3500 pips earned.

With a little modification on the System we have the same entries, but 21 wins /1 loss, but 2800 pips.

In your opinion, Do you sacrifice some pips, by having safest entries?

Thanks all for take the time to read this.
pips are irrelevant. Only the return on account is a relevant figure.
  • #11
  • Dec 10, 2011 1:01pm Dec 10, 2011 1:01pm
22 trades in a one year period... have no statistical validity whatsoever.

Whether you tweak it for more pips or safe entries or whatever...
it is too small a sample size to definitively say anything.

You MIGHT be lucky and it may be indicating a profitable method or system...
but you have no idea at this point...

this small selection of trades could be a random cluster with no 'edge' whatsoever, even though it generated 1000's of pips.

I wouldn't "play" or "tweak" it at all ... track it for a few more years.
  • #12
  • Dec 10, 2011 1:13pm Dec 10, 2011 1:13pm
Pips for vanity, profit for sanity.

Pips mean shit if you aren't making money
  • #13
  • Dec 10, 2011 5:33pm Dec 10, 2011 5:33pm
Quoting Intu
22 trades in a one year period... have no statistical validity whatsoever.

Whether you tweak it for more pips or safe entries or whatever...
it is too small a sample size to definitively say anything.

You MIGHT be lucky and it may be indicating a profitable method or system...
but you have no idea at this point...

this small selection of trades could be a random cluster with no 'edge' whatsoever, even though it generated 1000's of pips.

I wouldn't "play" or "tweak" it at all ... track it for a few more years.
I just give you this year like example of averange entries and pips, of course the system has been backtested from 2006 to now.
  • #14
  • Dec 10, 2011 7:31pm Dec 10, 2011 7:31pm
Quoting Kfx
Hi!

Let say we have 22 entries in 1 year, 18 wins / 4 losses, and 3500 pips earned.

With a little modification on the System we have the same entries, but 21 wins /1 loss, but 2800 pips.

In your opinion, Do you sacrifice some pips, by having safest entries?

Thanks all for take the time to read this.
Kfx

It is a subjective content in above.

You use pips counting.
Have you translated the pips in to amount?
Check it out:
- Silver and EUR/GBP are having higher amount in pips.

Another perspective, by assuming you have same RR e.g. 1:2.
GBP/USD, GBP/JPY, Gold are generally volatile and thus daily the pips range are larger than USD/JPY, USD/CHF, USD/SGD.
This, this could produce higher pips.

I think that's enough to share as I am an experience trader. You may be got point.

To me, the most important is the trading method that produce profit me.

Just my 2 cents
  • #15
  • Dec 11, 2011 2:19am Dec 11, 2011 2:19am
Quoting Kfx
I just give you this year like example of averange entries and pips, of course the system has been backtested from 2006 to now.
the sample is still far too small. 22 entries * 5 years = 110 entries.

statistical significance is reached with 10,000+ trades.

I wouldn't even bother analyzing such a small sample, cause it means absolutely nothing.
  • #16
  • Dec 11, 2011 4:16am Dec 11, 2011 4:16am
Quoting Custos
the sample is still far too small. 22 entries * 5 years = 110 entries.

statistical significance is reached with 10,000+ trades.

I wouldn't even bother analyzing such a small sample, cause it means absolutely nothing.
The problem is that it is impossible to do a Backtest of 10000 trades with this kind of Long Term System. If you start the BT from 1970 you get 41 years * 22 entries = 902 ...
  • #17
  • Dec 11, 2011 4:20am Dec 11, 2011 4:20am
Quoting Kfx
The problem is that it is impossible to do a Backtest of 10000 trades with this kind of Long Term System. If you start the BT from 1970 you get 41 years * 22 entries = 902 ...
so you only have 1 instrument on your platform? I thought there are a couple of thousand instruments on which one can perform backtests.
  • #18
  • Dec 11, 2011 4:25am Dec 11, 2011 4:25am
I think some people don't get the poin of the question ....

I'm not talking about of how many time you need backtesting a system ....

The question is if worth sacrificing some pips, to have more safe entries ....
  • #19
  • Dec 11, 2011 4:27am Dec 11, 2011 4:27am
Quoting Kfx
I think some people don't get the poin of the question ....

I'm not talking about of how many time you need backtesting a system ....

The question is if worth sacrificing some pips, to have more safe entries ....
pips are irrelevant. Return on account is relevant.
  • #20
  • Last Post: Dec 11, 2011 4:49am Dec 11, 2011 4:49am
All entries should be as safe as possible. That's like asking should I look left and right before I cross the road? Sure you may get away with it but eventually you will get killed. Preservation of capital is key.

Pips mean nothing. It's all about consistency. You can make as much money making just 20 pips a day as you can 200. At the end of the month the winner is not the one with the most pips it's the one with the higher % gained.
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