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cornellj · 10-10-2006, 04:08

Hi Bob,

In my business I make use of a standard lot size principle to ease the calculation.

In your example I would suggest the standard lot size to be one lot. If I entered 3 lots that would be 3 times the normal size. If I then calculate my pips it would be 1 lot made 20, 1 lot made 80 and 1 lot made nothing. On my standard lot size of one the pips would be 100.

If my standard lot size is 300 in one lot the pips would be 33.3 as calculated, the calculation is more difficult in this instance as more factors are involved.

I try and keep the calculations to the minimum and use a standard lot size approach and make trades in the standard or multiples of the standard lot size. The standard lot size is based on money management principles. If I have a position within a trade of three times the normal lot size the single pips made will be three times that of a standard lot over the same pipmovement.

I do not wish to add to confusion but found that using this approach eases the calculation of the number of pips profit made per trade and by extension per month.

Regards.

10-10-2006, 04:08	#7
cornellj level 3 Join Date: Oct 2003 Posts: 216 Downloads: 0 Uploads: 0 Rep Power: 0	Re: Counting pips Hi Bob, In my business I make use of a standard lot size principle to ease the calculation. In your example I would suggest the standard lot size to be one lot. If I entered 3 lots that would be 3 times the normal size. If I then calculate my pips it would be 1 lot made 20, 1 lot made 80 and 1 lot made nothing. On my standard lot size of one the pips would be 100. If my standard lot size is 300 in one lot the pips would be 33.3 as calculated, the calculation is more difficult in this instance as more factors are involved. I try and keep the calculations to the minimum and use a standard lot size approach and make trades in the standard or multiples of the standard lot size. The standard lot size is based on money management principles. If I have a position within a trade of three times the normal lot size the single pips made will be three times that of a standard lot over the same pipmovement. I do not wish to add to confusion but found that using this approach eases the calculation of the number of pips profit made per trade and by extension per month. Regards.