PPP - Patience Pays PIPS
OK, so basically you are only risking 1% of your capital on any given trade.
(in your example $150 of a total equity of $15000)
and you allow for price action to recover if the trad goes agains you
insted of having a physical stop loss order, ok If it works for you then I guess it does!
Like I said, other people can say whatever they want. It is currently working for me (will it continue to work, MAYBE or MAYBE NOT) but at max I am still only risking 15% MAX of my total funds.
On answering the other person in this discussion:
How I came about to my calculation of pips was like this.
For each 0.1 Mini Lot = $10. Each pip movements equates to $0.10
So,
$150 - 1.5 Mini Lot, Each Pip Movement equates to $0.10 x 15 = $1.50
Coming back to my earlier example, I AM WILLING TO RISK UP TO $15,000 or 15% of my total funds.
So, a trade of $150, allows me to risk up to $14,850
$14,850 equates to $14,850 / $1.50 = 9900 pips. I did the math using this logic. Don't really trust other people's calculators.
I have used SLs before, and it has caused me more losses. This trading style FITS me more.
You did bring up the question of risk rewards ratio. I do not use that as part of my trading arsenal. As far as I'm concern, the risk rewards ratio for any trade is 50%, i.e... it can go either way.
I'm only sharing this because you asked me to. I do not need to justify how I trade and how much money I can make by trading this way.
Isn't the point of TRADING is making money? And AS LONG AS I MAKE MONEY BY TRADING MY WAY, I don't see anything wrong in that.
If you still have an issue with that, then you have so much time to be so concerned about others, good for you. This would be the last post I would reply on this matter, unless someone else really wants to have a more open discussion on this.
Buy! Buy! Sell! Sell! Just make sure you have proper MM!
- #39,083
- Jan 17, 2012 9:38pm Jan 17, 2012 9:38pm
What is your target for the up move .
" If I can't be my own, I'd feel better dead" - Alice In Chains
- #39,084
- Jan 17, 2012 9:43pm Jan 17, 2012 9:43pm
- Joined Jul 2011 | Status: Gold Again | 10,564 Posts
It takes a lot for me to IGNORE you, but you can try.
You are right, you do not need to justify anything to anyone; but we are only trying to help.
And also, don't trust anyone else calculator, but for sure, double check your math too, there is a ZERO missing, either on the position size - 0.15 or 0.015 ? or the risk - is it 3% or 30% ?
Adios and good luck
150 / 50000 = 0.003 *100 = 0.3%
Position Size = 1.5 Mini Lots or 0.15 Standard lots or 15 micro lots (I'm following my broker's positions sizing AAAFX)
Note: I'm not sure where do you think the mistake is in the math, can't find it - unless my conversion from mini to standard is wrong.
Buy! Buy! Sell! Sell! Just make sure you have proper MM!
- #39,095
- Jan 18, 2012 1:51am Jan 18, 2012 1:51am
After being over 20 pips down for the last hour I finally ducked out with a one pip loss 
I dont wanna spend my evening staring at the screen might as well take a break now.
About my trading: Setup my first live $500 account December. Currently at $516.
I dont wanna spend my evening staring at the screen might as well take a break now.
About my trading: Setup my first live $500 account December. Currently at $516.
