How do you justify your transaction cost?
Suppose that you take momentum trades on break outs or you scalp within a trading range and aim to make 10 pips or so. And suppose that you pay a 1 pip spread on every trade (assuming no slippage or requote). In such case, your transaction cost would be 10% of your profit. Why do you think it is worth it? Is it because the high win rate of your system? Scalpers out there please share your insights!
-Paul
Suppose that you take momentum trades on break outs or you scalp within a trading range and aim to make 10 pips or so. And suppose that you pay a 1 pip spread on every trade (assuming no slippage or requote). In such case, your transaction cost would be 10% of your profit. Why do you think it is worth it? Is it because the high win rate of your system? Scalpers out there please share your insights!
-Paul