Ridiculously stupid question about counting pips

[forker]

No penguins cant fly.

Didn't one walk into the lions cage at a zoo this week?

 

[Hilarymannah]

fkin' idiots,.....

 

[JahDave]

Could someone out there clarify this please. If I bougth 2 lots at say 6000 with tp at 6020 that woud be 20 pips ok now if I bought 1 lot at 6000 and 1 lot at 6010 with both tp at 6020
would you say thats 20 pips + 10 pips =30 or would you say thats still 20 pips?

It averages out to a 15 pip profit anyway you look at it.

 

[forker]

It's 20 pips profit. You have to ignore the averaging-in aspect to the trade. If you open a trade at £10\pip at 6000 and take profit at 6020, you don't have 200 pips profit. Personally I think averaging-in is a terrible strategy for risk management.

 

[wackypete2]

Hmmm....2 sides here, some say 20 pips, others say 15 pips. Since the truth lies somewhere in the middle I say 17.5 pips, give or take 2.5

Peter

 

[barjon]

Could someone out there clarify this please. If I bougth 2 lots at say 6000 with tp at 6020 that woud be 20 pips ok now if I bought 1 lot at 6000 and 1 lot at 6010 with both tp at 6020
would you say thats 20 pips + 10 pips =30 or would you say thats still 20 pips?

Yes, as most have already pointed out, you can't translate market pips to account pips without including position size in the mix. So, for the three trades you example:

1. 20 market pips x 2 (position size) = 40 account pips
2. 20 market pips x 1 (position size) = 20 account pips
3. 10 market pips x 1 (position size) = 10 account pips

Thus, whilst trades 2 and 3 can be legitimately described as having captured 30 market pips they earn you only 75% of the account pips from trade 1.

jon

 

[trader_dante]

One more example:

I trade 2 lots long Crude at $87.00.

The trade shoots into profit and I get out of 1 lot at $87.15. Then it comes back and I get out the remaining lot at $87.00 for breakeven.

I record this as +7.5 ticks.

 

[Hotch]

The other solution is to just record them as two separate trades.

 

[DDI]

One more example:

I trade 2 lots long Crude at $87.00.

The trade shoots into profit and I get out of 1 lot at $87.15. Then it comes back and I get out the remaining lot at $87.00 for breakeven.

I record this as +7.5 ticks.

that is 15 pips. as hotch said, each 'lot' must be treated as one trade.

anyway, we're going round circles...its cash that counts, not pips.

 

[Hotch]

I dunno if that's what I said, as before, personally I'd only use pip amounts in reference to move captured, so go with the max of each individual lots capture. In the case Tom gave, 15 ticks. Trying to use pips as a measure on return is just dumb, no matter what you do.

 

[trader_dante]

that is 15 pips....

Nooooooooooooooooo it's not.

Well,it's not to me.

So there.

hehehehe

 

[new_trader]

One more example:

I trade 2 lots long Crude at $87.00.

The trade shoots into profit and I get out of 1 lot at $87.15. Then it comes back and I get out the remaining lot at $87.00 for breakeven.

I record this as +7.5 ticks.

TD, it is irrelevant how you record the results because only you know what you did. If however, you tell someone else that you made 7.5 ticks on 'a' trade then it's up to you to give them all the details to prevent them from assuming or guessing how it was accomplished. Some people might think you did 10 lots @ 7.5 ticks ie/ All in and all out for a complete 7.5 tick move. You say tomato, I say tomato (doesn't really work in text), you say 7.5 ticks, I say full disclosure

 

[glyder]

The way I see it is if there is a move and you could get 100% of that at best in a trade. Probably very unusual to reach that level.
Say the movement you traded is 100 pips at its max extent, the only reason to count pips is to see how well you traded it.
so 90 pips would be doing great, 15 out of 100 pretty poor. What can you learn to do better next time? It doesn't matter what size of trade or double or triple lots. Just how far in pips the full move travelled and how much of those you managed to get out of the trade. Beyond that pips don't matter. Money does.

 

[Hotch]

Nooooooooooooooooo it's not.

Well,it's not to me.

So there.

hehehehe

Ah! So your vendor badge is for your poetry? Damn, looks like you've got tough times ahead!

 

[Pazienza]

Don't count pips. Measure returns as a % of your risk per trade.