Average Pips move profit per day in FX Markets

Quote from illiquid:

What does avg range have anything to do with avg profit? 80 pip range also means you can lose 80 pips a day as well.

I don't understand why people obssess over average anything, the question makes absolutely zero sense at all.
More...
At last someone with a brain in this thread ...
If you see some of these posters have over a thousand posts it says a lot about what ET has become ...
 
Quote from illiquid:

What does avg range have anything to do with avg profit?
More...

Probably due to profits/ losses of a day are determined by the number of points movements and lot/ contract size, an average range in terms of points would determine the potential range/ average/ maximum of profits/ losses for the day.
:confused:
 
Could you be saying that Range is used as a benchmark by some scalpers to determing their performance....2 x range....etc....


Quote from OddTrader:

Probably due to profits/ losses of a day are determined by the number of points movements and lot/ contract size, an average range in terms of points would determine the potential range/ average/ maximum of profits/ losses for the day.
:confused:
More...
 
Afetr learning and studying this interesting issue (at least to me), I haven't got all clear/ firm answers yet, except more questions (that I might never know the answers).

However, I think some variables would greatly impact the issue, such as price level (a daily range 100 pips at price 1.5000 is 0.7%, but 100 pips at price 1.0000 is 1%).

Within the context of this thread, I believe the 300 pips per month (at current price level) as mentioned by others would be already a very good result indeed (particularly after compounding), if achieved consitently (with reasonably small DD).

I would guess, for anything over a threshold say 300 pips per month (or else), there could be an effect (such as DD, win-rate, costs, etc.) of diminishing returns (regardless style/ method/ system?) applicable. (Probably only the almighty marketmakers would understand how to do it so efficiently. LOL)

:confused:
 
Not bad for a novice...


Quote from OddTrader:

Afetr learning and studying this interesting issue (at least to me), I haven't got all clear/ firm answers yet, except more questions (that I might never know the answers).

However, I think some variables would greatly impact the issue, such as price level (a daily range 100 pips at price 1.5000 is 0.7%, but 100 pips at price 1.0000 is 1%).

Within the context of this thread, I believe the 300 pips per month (at current price level) as mentioned by others would be already a very good result indeed (particularly after compounding), if achieved consitently (with reasonably small DD).

I would guess, for anything over a threshold say 300 pips per month (or else), there could be an effect (such as DD, win-rate, costs, etc.) of diminishing returns (regardless style/ method/ system?) applicable. (Probably only the almighty marketmakers would understand how to do it so efficiently. LOL)

:confused:
More...
 
Quote from ElectricSavant:

Not bad for a novice...
More...

Thanks.

The results from gurus like you and others (on oanda site) that have achieved or/ and targeted a 1% daily return on equity would be completely amazing to me. :confused:
 
To be a guru, doesn't one need a following?

Quote from OddTrader:

Thanks.

The results from gurus like you and others (on oanda site) that have achieved or/ and targeted a 1% daily return on equity would be completely amazing to me. :confused:
More...
 
Quote from swoop[TR]:


What I'm saying is, you will know your average pip per day/trade AFTER the fact. Not before. You can set yourself objectives but I don't think you should or even can for that matter systemically make that average per day. IT's just not logical and probably not a sound trading plan.

Every trade is different. That is not a secret but it is very much overlooked. Even in systematic trading...every trade has its own little characteristics.
More...


Quote from JanaSergeevna:

IMHO making a steady and reliable average of 20 pips per day off any one specific instrument is pretty difficult and an excellent result. In some senses the number of pips per day that you can make is actually less important than the reliability, though. An average of (say) 400 pips per month (about 20 per trading day) is not so clever if it conceals a 500-pip drawdown, and it will require totally different money management from a system which produces something in the range of -20 to +60 pips per day (which might also average out at +20). IMHO many traders do not adequately take the variability into account in working out their position-sizing.
More...

Quote from Andy62279:

Thats the problem with money management. Too aggressive MM can result in higher drawdowns, or account being wiped out. MM and the method should accomodate each other.

IMO... a less reliable method making 400 pips average per month isn't as good as a reliable method making 200 pips on average. Less reliable methods cannot take advantage of money management, where as a reliable method can take advantage of money management. Proper money management can produce very good performance... but a reliable method is required.

I'm sure there are different ways of looking at this, but this is the way I look at it though
More...

Thanks for the above input from them (and many others as well), I've been following these advices. They are my gurus on ET. :)
 
You must log in or register to reply here.
Back
Top