Another issue with the numbers in the original post, is that you are risking all of your money every day to get 3 pips.
Besides the obvious poor money management, there is a real reason this is not possible.
As soon as you place an order, you are in the hole 3 to 5 pips depending on the currency pair. This would automatically be an impossible purchase because most platforms would kick you out right away – because you would immediately be in the hole – meaning not enough money to cover the purchase costs.
A purchase with all 100000 at three pips would cost you 3000 dollars, hence you would actually need 103000 dollars. So at best you could use 97000 dollars total on a 3 pip spread that way you could cover the cost of your purchase. (This is on a 100 to 1 margin, 30:1 would be about 750 bucks, but same principle – could not use full amount.)
In addition, for every pip that goes the wrong way for you, you have to have money in your account to cover it, otherwise you will get automatically kicked out losing your money – at least on some platforms. Others may give a margin call.
In FX, things can easily go the other way, 10 to 20 pips in seconds. So If you bail out, then it would take you the next 3 days to 2 weeks of trading (depending on loss size and bid/ask spread) to make up that loss earning 3 pips a day, and then you still need to make up for the days that you were making up for your loss – so in essence you need to do 6 pips a day for 3 days to 2 weeks, to make up your loss (assuming no other losses during this period).
And then all of the sudden your strategy goes from 3 pips a day to having to increase your goal by 100 percent for the next several days just to make up for your loss. And the question is, do you have a strategy to do that with. And if you do, why not trade for 6 pips all the time.
Anyways, those are some thoughts on the issue. Many Experts like Alexander Elder in the classic “Trading for a Living” recommend a 5 percent position at most, with a 2 percent equity drawdown at most per trade. If that is the case then with 100000 dollars you would actually only be trading 5000 dollars, and then 3 pips at 30:1 leverage gives you 15 bucks a day.
Just some thoughts.
GL & GT
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