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TL;DR at the bottom for those not interested in the details.

This is a bit of a novel, sorry about that. It was mostly for getting my own thoughts organized, but if even one person reads the whole thing I will feel incredibly accomplished.

I wanted to see how effective this system was at H1 for a couple of reasons: 1) My current broker is TD Ameritrade - their Forex minimum is a mini lot, and I don't feel comfortable enough yet with the risk to trade mini lots on the higher timeframes(i.e. wider pip swings) that ParallaxFX's system uses, so I wanted to see if I could scale it down. 2) I'm fairly impatient, so I don't like to wait days and days with my capital tied up just to see if a trade is going to win or lose.

This does mean it requires more active attention since you are checking for setups once an hour instead of once a day or every 4-6 hours, but the upside is that you trade more often this way so you end up winning or losing faster and moving onto the next trade. Spread does eat more of the trade this way, but I'll cover this in my data below - it ends up not being a problem.

I looked at data from 6/11 to 7/3 on all pairs with a reasonable spread(pairs listed at bottom above the TL;DR). So this represents about 3-4 weeks' worth of trading. I used mark(mid) price charts. Spreadsheet link is below for anyone that's interested.

- I'm using the stop entry version - so I wait for the price to trade beyond the confirmation candle(in the direction of my trade) before entering. I don't have any data to support this decision, but I've always preferred this method over retracement-limit entries. Maybe I just like the feeling of a higher winrate even though there can be greater R:R using a limit entry. Variety is the spice of life.
- I put my stop loss right at the opposite edge of the confirmation candle. NOT at the edge of the 2-candle pattern that makes up the system. I'll get into this more below - not enough trades are saved to justify the wider stops. (Wider stop means less $ per pip won, assuming you still only risk 1%).
- All my profit/loss statistics are based on a 1% risk per trade. Because 1 is real easy to multiply.
- There are definitely some questionable trades in here, but I tried to make it as mechanical as possible for evaluation purposes. They do fit the definitions of the system, which is why I included them. You could probably improve the winrate by being more discretionary about your trades by looking at support/resistance or other techniques.
- I didn't use MBB much for either entering trades, or as support/resistance indicators. Again, trying to be pretty mechanical here just for data collection purposes. Plus, we all make bad trading decisions now and then, so let's call it even.
- As stated in the title, this is for H1 only. These results may very well not play out for other time frames - who knows, it may not even work on H1 starting this Monday. Forex is an unpredictable place.
- I collected data to show efficacy of taking profit at three different levels: -61.8%, -100% and -161.8% fib levels described in the system using the passive trade management method(set it and forget it). I'll have more below about moving up stops and taking off portions of a position.

- Total Trades: 241
- Raw Winrates:
- TP at -61.8%: 177 out of 241:
**73.44%** - TP at -100%: 156 out of 241:
**64.73%** - TP at -161.8%: 121 out of 241:
**50.20%**

- TP at -61.8%: 177 out of 241:
- Adjusted Proft % (takes spread into account):
- TP at -61.8%:
**5.22%** - TP at -100%:
**23.55%** - TP at -161.8%:
**29.14%**

- TP at -61.8%:

EDIT: I grabbed typical spreads from other brokers, and turns out while TDA is pretty competitive on majors, their minors/crosses are awful! IG beats them by 20-40% and Oanda beats them 30-60%! Using IG spreads for calculations increased profits considerably (another 5% on top) and Oanda spreads increased profits massively (another 15%!). Definitely going to be considering another broker than TDA for this strategy. Plus that'll allow me to trade micro-lots, so I can be more granular(and thus accurate) with my position sizing and compounding.

Removing any trades where the spread is more than 50% of the trade width improved profits slightly without removing many trades, but this is almost certainly just coincidence on a small sample size. Going below 40% and even down to 30% starts to cut out a lot of trades for the less-common pairs, but doesn't actually change overall profits at all(~1% either way).

However, digging all the way down to 25% starts to really make some movement. Profit at the -161.8% TP level jumps up to

You can get your profits all the way up to

Overall based on this data, I'm going to only take trades where the spread is less than 25% of the trade width. This may bias my trades more towards the majors, which would mean a lot more correlated trades as well(more on correlation below), but I think it is a reasonable precaution regardless.

On many of the hour slices I have a feeling I'm just dealing with small number statistics here since I didn't have a lot of data when breaking it down by individual hours. But here it is anyway - for all TP levels, these three things showed up(all in Eastern time):

- 7pm-4am: Fewer setups, but winrate high.
- 5am-6am: Lots of setups, but but winrate low.
- 12pm-3pm Medium number of setups, but winrate low.

That being said, these time frames work out for me pretty well because I typically sleep 12am-7am Eastern time. So I automatically avoid the 5am-6am timeframe, and I'm awake for the majority of this system's setups.

Anyways. What I found was that for these trades moving stops up...basically at all...actually reduced the overall profitability.

One of the data points I collected while charting was where the price retraced back to after hitting a certain milestone. i.e. once the price hit the -61.8% profit level, how far back did it retrace before hitting the -100% profit level(if at all)? And same goes for the -100% profit level - how far back did it retrace before hitting the -161.8% profit level(if at all)?

Well, some complex excel formulas later and here's what the results

- Moving SL up to 0% when the price hits -61.8%, TP at -100%
- Winrate:
**46.4%** - Adjusted Proft % (takes spread into account):
**5.36%**

- Winrate:
- Taking half position off at -61.8%, moving SL up to 0%, TP remaining half at -100%
- Winrate:
**65.97%** - Adjusted Proft % (takes spread into account):
**-1.01%**(yes, a net loss)

- Winrate:

Well even when I manually modified the data so that the spread wasn't subtracted(i.e. "Breakeven" was truly +/- 0), things don't look a whole lot better, and still way worse than the passive trade management method of leaving your stops in place and letting it run. And that isn't even a realistic scenario because to adjust out the spread you'd have to move your stoploss inside the candle edge by at least the spread amount, meaning it would almost certainly be triggered more often than in the data I collected(which was purely based on the fib levels and mark price). Regardless, here are the numbers for that scenario:

- Moving SL up to 0% when the price hits -61.8%, TP at -100%
- Winrate(breakeven doesn't count as a win):
**46.4%** - Adjusted Proft % (takes spread into account):
**17.97%**

- Winrate(breakeven doesn't count as a win):
- Taking half position off at -61.8%, moving SL up to 0%, TP remaining half at -100%
- Winrate(breakeven doesn't count as a win):
**65.97%** - Adjusted Proft % (takes spread into account):
**11.60%**

- Winrate(breakeven doesn't count as a win):

I also briefly looked at moving stops to other lower levels (78.6%, 61.8%, 50%, 38.2%, 23.6%), but that didn't improve things any. No hard data to share as I only took a quick look - and I still might have done something wrong overall.

The data is there to infer other strategies if anyone would like to dig in deep(more explanation on the spreadsheet below). I didn't do other combinations because the formulas got pretty complicated and I had already answered all the questions I was looking to answer.

Of the 60 purely losing trades, only 9 of them(15%) would go on to be winners with stops on the 2-candle formation. Certainly not enough to justify the extra loss and/or reduced profits you are exposing yourself to in every single other trade by setting a wider SL.

Oddly, in every single scenario where the wider stop did save the trade, it ended up going all the way to the -161.8% profit level. Still, not nearly worth it.

Looking at shared currency among the pairs traded, 74 of the trades are correlated. Quite a large group, but it makes sense considering the sort of moves we're looking for with this system.

This means you are opening yourself up to more risk if you were to trade on every signal since you are technically trading with the same underlying sentiment on each different pair. For example, GBP/USD and AUD/USD moving together almost certainly means it's due to USD moving both pairs, rather than GBP and AUD both moving the same size and direction coincidentally at the same time. So if you were to trade both signals, you would very likely win or lose both trades - meaning you are actually risking double what you'd normally risk(unless you halve both positions which can be a good option, and is discussed in ParallaxFX's posts and in various other places that go over pair correlation. I won't go into detail about those strategies here).

Interestingly though, 17 of those apparently correlated trades ended up with different wins/losses.

Also, looking only at trades that were correlated, winrate is 83%/70%/55% (for the three TP levels).

Does this give some indication that the same signal on multiple pairs means the signal is stronger? That there's some strong underlying sentiment driving it? Or is it just a matter of too small a sample size? The winrate isn't really much higher than the overall winrates, so that makes me doubt it is statistically significant.

One more funny tidbit: EUCAD netted the lowest overall winrate: 30% to even the -61.8% TP level on 10 trades. Seems like that is just a coincidence and not enough data, but dang that's a sucky losing streak.

- Total Trades: 75
- Raw Winrates:
- TP at -61.8%:
**84.00%** - TP at -100%:
**73.33%** - TP at -161.8%:
**60.00%** - Moving SL up to 0% when the price hits -61.8%, TP at -100%:
**53.33%** - Taking half position off at -61.8%, moving SL up to 0%, TP remaining half at -100%:
**53.33%**(yes, oddly the exact same winrate. but different trades/profits)

- TP at -61.8%:
- Adjusted Proft % (takes spread into account):
- TP at -61.8%:
**18.13%** - TP at -100%:
**26.20%** - TP at -161.8%:
**34.01%** - Moving SL up to 0% when the price hits -61.8%, TP at -100%:
**19.20%** - Taking half position off at -61.8%, moving SL up to 0%, TP remaining half at -100%:
**17.29%**

- TP at -61.8%:

I may also use more discretionary methods(support/resistance, quality of indecision/confirmation candles, news/sentiment for the pairs involved, etc) to filter out correlated trades in the future. But as I've said before I'm going for a pretty mechanical system.

This brought the 3 TP levels and even the breakeven strategies much closer together in overall profit. It muted the profit from the high R:R strategies and boosted the profit from the low R:R strategies. This tells me pair correlation was skewing my data quite a bit, so I'm glad I dug in a little deeper. Fortunately my original conclusion to use the -161.8 TP level with static stops is still the winner by a good bit, so it doesn't end up changing my actions.

There were a few times where MANY (6-8) correlated pairs all came up at the same time, so it'd be a crapshoot to an extent. And the data showed this - often then won/lost together, but sometimes they did not. As an arbitrary rule, the more correlations, the more trades I did end up taking(and thus risking). For example if there were 3-5 correlations, I might take the 2 "best" trades given my criteria above. 5+ setups and I might take the best 3 trades, even if the pairs are somewhat correlated.

I have no true data to back this up, but to illustrate using one example: if AUD/JPY, AUD/USD, CAD/JPY, USD/CAD all set up at the same time (as they did, along with a few other pairs on 6/19/20 9:00 AM), can you really say that those are all the same underlying movement? There are correlations between the different correlations, and trying to filter for that seems rough. Although maybe this is a known thing, I'm still pretty green to Forex - someone please enlighten me if so! I might have to look into this more statistically, but it would be pretty complex to analyze quantitatively, so for now I'm going with my gut and just taking a few of the "best" trades out of the handful.

Overall, I'm really glad I went further on this. The boosting of the B/E strategies makes me trust my calculations on those more since they aren't so far from the passive management like they were with the raw data, and that really had me wondering what I did wrong.

- "System Details" I described above.
- TP at -161.8%
- Static SL at opposite side of confirmation candle - I won't move stops up to breakeven.
- Trade only 7am-11am and 4pm-11pm signals.
- Nothing where spread is more than 25% of trade width.

- Winrate:
**58.19%** - Adjusted Proft % (takes spread into account):
**47.43%**

- ATR is only slightly elevated in this date range from historical levels, so this should fairly closely represent reality even after the COVID volatility leaves the scalpers sad and alone.
- The sample size is much too small for anything really meaningful when you slice by hour or pair. I wasn't particularly looking to test a specific pair here - just the system overall as if you were going to trade it on all pairs with a reasonable spread.

I have some explanatory notes below to help everyone else understand the spiraled labyrinth of a mind that put the spreadsheet together.

- I'm on the East Coast in the US, so the timestamps are Eastern time.
- Time stamp is from the confirmation candle, not the indecision candle. So 7am would mean the indecision candle was 6:00-6:59 and the confirmation candle is 7:00-7:59 and you'd put in your order at 8:00.
- I found a couple AM/PM typos as I was reviewing the data, so let me know if a trade doesn't make sense and I'll correct it.

**Pair**- duh**Date/Time**- Eastern time, confirmation candle as stated above**Win to -61.8%?**- whether the trade made it to the -61.8% TP level before it hit the original SL.**Win to -100%?**- whether the trade made it to the -100% TP level before it hit the original SL.**Win to -161.8%?**- whether the trade made it to the -161.8% TP level before it hit the original SL.**Retracement level between -61.8% and -100%**- how deep the price retraced after hitting -61.8%, but before hitting -100%. Be careful to look for the negative signs, it's easy to mix them up. Using the fib% levels defined in ParallaxFX's original thread. A plain hyphen "-" means it did not retrace, but rather went straight through -61.8% to -100%. Positive 100 means it hit the original SL.**Retracement level between -100% and -161.8%**- how deep the price retraced after hitting -100%, but before hitting -161.8%. Be careful to look for the negative signs, it's easy to mix them up. Using the fib% levels defined in ParallaxFX's original thread. A plain hyphen "-" means it did not retrace, but rather went straight through -100% to -161.8%. Positive 100 means it hit the original SL.**Trade Width(Pips)**- the size of the confirmation candle, and thus the "width" of your trade on which to determine position size, draw fib levels, etc.**Loser saved by 2 candle stop?**- for all losing trades, whether or not the 2-candle stop loss would have saved the trade and how far it ended up getting if so. "No" means it didn't save it, N/A means it wasn't a losing trade so it's not relevant.**Spread(ThinkorSwim)**- these are typical spreads for these pairs on ToS.**Spread % of Width**- How big is the spread compared to the trade width? Not used in any calculations, but interesting nonetheless.**True Risk(Trade Width + Spread)**- I set my SL at the opposite side of the confirmation candle knowing that I'm actually exposing myself to slightly more risk because of the spread(stop order = market order when submitted, so you pay the spread). So this tells you how many pips you are actually risking despite the Trade Width. I prefer this over setting the stop inside from the edge of the candle because some pairs have a wide spread that would mess with the system overall. But also many, many of these trades retraced very nearly to the edge of the confirmation candle, before ending up nicely profitable. If you keep your risk per trade at 1%, you're talking a true risk of, at most, 1.25% (in worst-case scenarios with the spread being 25% of the trade width as I am going with above).**Win or Loss in %(1% risk) including spread TP -61.8%**- not going to go into huge detail, see the spreadsheet for calculations if you want. But, in a nutshell, if the trade was a win to 61.8%, it returns a positive # based on 61.8% of the trade width, minus the spread. Otherwise, it returns the True Risk as a negative. Both normalized to the 1% risk you started with.**Win or Loss in %(1% risk) including spread TP -100%**- same as the last, but 100% of Trade Width.**Win or Loss in %(1% risk) including spread TP -161.8%**- same as the last, but 161.8% of Trade Width.**Win or Loss in %(1% risk) including spread TP -100%, and move SL to breakeven at 61.8%**- uses the retracement level columns to calculate profit/loss the same as the last few columns, but assuming you moved SL to 0% fib level after price hit -61.8%. Then full TP at 100%.**Win or Loss in %(1% risk) including spread take off half of position at -61.8%, move SL to breakeven, TP 100%**- uses the retracement level columns to calculate profit/loss the same as the last few columns, but assuming you took of half the position and moved SL to 0% fib level after price hit -61.8%. Then TP the remaining half at 100%.**Overall Growth(-161.8% TP, 1% Risk)**- pretty straightforward. Assuming you risked 1% on each trade, what the overall growth level would be chronologically(spreadsheet is sorted by date).

- AUD/CAD
- AUD/CHF
- AUD/JPY
- AUD/NZD
- AUD/USD
- CAD/CHF
- CAD/JPY
- CHF/JPY
- EUAUD
- EUCAD
- EUCHF
- EUGBP
- EUJPY
- EUNZD
- EUUSD
- GBP/AUD
- GBP/CAD
- GBP/CHF
- GBP/JPY
- GBP/NZD
- GBP/USD
- NZD/CAD
- NZD/CHF
- NZD/JPY
- NZD/USD
- USD/CAD
- USD/CHF
- USD/JPY

- Date range:
**6/11-7/3** - Winrate:
**58.19%** - Adjusted Proft % (takes spread into account):
**47.43%**

A quick note is that TD's paper trade system fills at the mid price for both stop and limit orders, so I had to subtract the spread from the raw trade values to get the true profit/loss amount for each trade.

I'm heading out of town next week, then after that it'll be time to take this sucker live!

- 86 Trades
- Date range:
**7/9-7/30** - Winrate:
**52.32%** - Adjusted Proft % (takes spread into account):
**20.73%**- Starting Balance:
**$5,000** - Ending Balance:
**$6,036.51**

- Starting Balance:

- Date range:

I suppose it's been asked before, but unfortunately couldn't see it on reddit if it had ever been asked. Anyways, I'm new to Forex trading, and started grasping some few concepts from here and there. Getting straight to the point, the position size formula is as follows:

Account at Risk = Pip(s) at Risk x Pip's Value x Position size

Based on the formula above I guess everyone only works on to find the position size rather than account at risk. So, for instance if I have $300 account, risking 1 percent ($3) with a pip value of $10/pip with pips at risk at 49 pips and plugged every value in the formula above; my position size would be 613.244898 units or 0.006 lot size. That is if we were finding the position size.

So, my point is, what if I wanted to find the pips at risk instead of position size? The reason is I want it to be a perfect unit or lot, like 600 units instead of 613 units we got from the calculation above.

I did the calculations and got 5 pips?? (I got that by dividing 0.0005 divided by 0.0001) does it indicate that the position size would include a pipette? Based on the 49 pips we set on the first example?? And if we did the same thing with 49 pips we'd be getting 4.9...so does that mean 4 is a pip and 9 is a pipette? Or am i missing something?

Sorry for any vocabulary or grammatical errors in advance, english isn't my first language:)

submitted by Ayman_Rocco980 to Forex [link] [comments]
Account at Risk = Pip(s) at Risk x Pip's Value x Position size

Based on the formula above I guess everyone only works on to find the position size rather than account at risk. So, for instance if I have $300 account, risking 1 percent ($3) with a pip value of $10/pip with pips at risk at 49 pips and plugged every value in the formula above; my position size would be 613.244898 units or 0.006 lot size. That is if we were finding the position size.

So, my point is, what if I wanted to find the pips at risk instead of position size? The reason is I want it to be a perfect unit or lot, like 600 units instead of 613 units we got from the calculation above.

I did the calculations and got 5 pips?? (I got that by dividing 0.0005 divided by 0.0001) does it indicate that the position size would include a pipette? Based on the 49 pips we set on the first example?? And if we did the same thing with 49 pips we'd be getting 4.9...so does that mean 4 is a pip and 9 is a pipette? Or am i missing something?

Sorry for any vocabulary or grammatical errors in advance, english isn't my first language:)

Brand new to forex, after messing around with stocks and ETFs for a year on robinhood.

In trying to learn about this strange new world, seemingly every article warns me that trading forex is the fastest route to poverty, that I'll lose every dime I have and that I'm better off buying lottery tickets, UNLESS I have a risk management plan.

That's all good and well, but it seems hard to find suggestions on how to actually manage my risk. So far what I have found is either unconvincing, or I just flat don't understand what is being explained. So I've landed here.

Reading the Forex FAQ, in this sub, the advice is to use a very small amount of capital when starting off, and practice live trading from there. If then recommends a formula to use in order to calculate risk, which seems like quite a bit of running calculations for every single trade that I make. Is it really the case that every Forex Trader that manages risk runs a series of calculations for each and every trade in order to figure out pip value and leverage amount, such matter and what have you?

Second problem, before even getting to the risk management section of this Subs FAQ, I'm told to read The Beginner's Guide on baby Pips. Babypips says that when you first start off trading you should not start small because then you will never be able to weather times of drawdown. They recommend something like an initial deposit of $20,000 or 50,000, and saying that if you don't have that much then build up your savings and come back the Forex when you have that to drop into the market. Are you kidding me?

My original plan before reading either of those guides was to deposit $300 and use something like a 10 to 1 or 20 to 1 Leverage.

The part that I'm hung up on which really baffles me and I need some help understanding is everywhere seems to say that I should only risk one or 2% of my account. I don't really understand what that means.

My trading app, OandA allows me to set default trade settings. One of them is trade size, which I can select an option "%Lev NAV" In all of my general Trading I have kept this number at 100, assuming that it is simply using 100% of my account for each trade.

I am also using a system in order to Define very specific entry points with a one-to-one risk reward ratio, setting a stop loss and take profit Target, usually between 9 and 60 Pips in size, depending on the instrument. Thus far, each trade that I have won usually amounts to a 3 to 8% change in the demo account value, which seems comprable to what I was experiencing with stocks and ETFs back on Robinhood. For the last 4 trades I've made, I'm up 15%.

Do I need to adjust this % Lev NAV down to 1% instead of 100? Or do I really need to download a pip value calculator app and make a determination after solving some arithmetic? I just can't seem to figure this out, and different sources use the same words interchangeably yet differently. When risking 1% of my account, does that include leverage, or not, in the trade? And if the most anyone recommends to risk in a trade is 1-2% then why use leverage at all? Won't the returns on 1% be so small as to be negligible? I don't seem to understand how it could possibly be Worth while to spend all that time trading... 1℅ of $300 is three bucks. As I understand it, that would allow me to buy 2 units of the EUUSD... there's no way that could be right, right?

Thanks for your patience and for reading this whole, chapter-length, question of a post.

I look forward to some clarity. I don't know how to switch to live trading, and the demo account does nothing to simulate leverage.

submitted by rm-rf_iniquity to Forex [link] [comments]
In trying to learn about this strange new world, seemingly every article warns me that trading forex is the fastest route to poverty, that I'll lose every dime I have and that I'm better off buying lottery tickets, UNLESS I have a risk management plan.

That's all good and well, but it seems hard to find suggestions on how to actually manage my risk. So far what I have found is either unconvincing, or I just flat don't understand what is being explained. So I've landed here.

Reading the Forex FAQ, in this sub, the advice is to use a very small amount of capital when starting off, and practice live trading from there. If then recommends a formula to use in order to calculate risk, which seems like quite a bit of running calculations for every single trade that I make. Is it really the case that every Forex Trader that manages risk runs a series of calculations for each and every trade in order to figure out pip value and leverage amount, such matter and what have you?

Second problem, before even getting to the risk management section of this Subs FAQ, I'm told to read The Beginner's Guide on baby Pips. Babypips says that when you first start off trading you should not start small because then you will never be able to weather times of drawdown. They recommend something like an initial deposit of $20,000 or 50,000, and saying that if you don't have that much then build up your savings and come back the Forex when you have that to drop into the market. Are you kidding me?

My original plan before reading either of those guides was to deposit $300 and use something like a 10 to 1 or 20 to 1 Leverage.

The part that I'm hung up on which really baffles me and I need some help understanding is everywhere seems to say that I should only risk one or 2% of my account. I don't really understand what that means.

My trading app, OandA allows me to set default trade settings. One of them is trade size, which I can select an option "%Lev NAV" In all of my general Trading I have kept this number at 100, assuming that it is simply using 100% of my account for each trade.

I am also using a system in order to Define very specific entry points with a one-to-one risk reward ratio, setting a stop loss and take profit Target, usually between 9 and 60 Pips in size, depending on the instrument. Thus far, each trade that I have won usually amounts to a 3 to 8% change in the demo account value, which seems comprable to what I was experiencing with stocks and ETFs back on Robinhood. For the last 4 trades I've made, I'm up 15%.

Do I need to adjust this % Lev NAV down to 1% instead of 100? Or do I really need to download a pip value calculator app and make a determination after solving some arithmetic? I just can't seem to figure this out, and different sources use the same words interchangeably yet differently. When risking 1% of my account, does that include leverage, or not, in the trade? And if the most anyone recommends to risk in a trade is 1-2% then why use leverage at all? Won't the returns on 1% be so small as to be negligible? I don't seem to understand how it could possibly be Worth while to spend all that time trading... 1℅ of $300 is three bucks. As I understand it, that would allow me to buy 2 units of the EUUSD... there's no way that could be right, right?

Thanks for your patience and for reading this whole, chapter-length, question of a post.

I look forward to some clarity. I don't know how to switch to live trading, and the demo account does nothing to simulate leverage.

If you are interested in forex trading and don’t know where to start, then you are at the right place to learn about forex trading. In this series of blogs, I will be discussing couple of basic terms to know before diving into forex trading. One of the most commonly used term in forex is “ https://bizztrade.com/ ” or known otherwise as “Point in Percentage”. We shall look into detail what exactly is PIP, how can it be calculated and what is its benefits in forex trading.

Defining PIP

In forex, fluctuations of currency prices are quite minor and thus, they are measured in decimal points. A pip is considered as an incremental price movement with specific value dependent on the forex market. This standardized size of pip protects investors with huge losses.

In some cases, a pip consists of the fourth decimal point of a price that is equal to 1/100th of 1%. For example, if EUR / USD moves from 1.07172 to 1.07182 then the difference in the rise in value which is 0.0001 USD equals to 1 pip.

Defining Pipette

Many brokers quote the value of pips in “5 and 3” rather than “2 and 4” which denotes the pip values in a fraction. These fraction values are called pipettes. Each fractional pip equals to “one tenth of a pip”. Each value of the pip or pipette will differ based on the currency that the investotrader has opened in. In a way, we can say that a pip value enables us to calculate the profit and loss before diving in to forex trading.

Calculation of PIP

PIP values varies based on the currency pairs that you are trading in. It also depends on the base currency and counter currency. The pip value is calculate via the simple formula as shown below:

(size of a pip) x (base currency) = PIP value

Another example of understanding what a pip value is that if GBP/USD moves from 1.30542 to 1.30543, then the 0.00001 USD increase is 1 pip value.

Lets look at another example which denotes the calculation of PIP value in forex trading. We will consider the example of USD/JPY. In this case, the value of PIP depends on the exchange rate of USD/JPY.

Suppose that the buy price for USD/JPY is 106.20 and the lot size is 10,000, using the above mentioned formula, the value of the pip will be 0.94 USD. Likewise, if you buy 10,000 USD at the rate of 106.20 yen and you earn $0.94 for every pip value increase. If you sold that same pip at 106.40 yen, then you gain profit of $18.80 but if you sold at 106.00, then you will lose $18.80.

Now that you have understood what exactly is pip and pipette and how to calculate the value of pip before diving deeper into the world of forex trading, be very careful before investing money into money into currency where fluctuation levels are minimal in order to avoid losing your money.

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Defining PIP

In forex, fluctuations of currency prices are quite minor and thus, they are measured in decimal points. A pip is considered as an incremental price movement with specific value dependent on the forex market. This standardized size of pip protects investors with huge losses.

In some cases, a pip consists of the fourth decimal point of a price that is equal to 1/100th of 1%. For example, if EUR / USD moves from 1.07172 to 1.07182 then the difference in the rise in value which is 0.0001 USD equals to 1 pip.

Defining Pipette

Many brokers quote the value of pips in “5 and 3” rather than “2 and 4” which denotes the pip values in a fraction. These fraction values are called pipettes. Each fractional pip equals to “one tenth of a pip”. Each value of the pip or pipette will differ based on the currency that the investotrader has opened in. In a way, we can say that a pip value enables us to calculate the profit and loss before diving in to forex trading.

Calculation of PIP

PIP values varies based on the currency pairs that you are trading in. It also depends on the base currency and counter currency. The pip value is calculate via the simple formula as shown below:

(size of a pip) x (base currency) = PIP value

Another example of understanding what a pip value is that if GBP/USD moves from 1.30542 to 1.30543, then the 0.00001 USD increase is 1 pip value.

Lets look at another example which denotes the calculation of PIP value in forex trading. We will consider the example of USD/JPY. In this case, the value of PIP depends on the exchange rate of USD/JPY.

Suppose that the buy price for USD/JPY is 106.20 and the lot size is 10,000, using the above mentioned formula, the value of the pip will be 0.94 USD. Likewise, if you buy 10,000 USD at the rate of 106.20 yen and you earn $0.94 for every pip value increase. If you sold that same pip at 106.40 yen, then you gain profit of $18.80 but if you sold at 106.00, then you will lose $18.80.

Now that you have understood what exactly is pip and pipette and how to calculate the value of pip before diving deeper into the world of forex trading, be very careful before investing money into money into currency where fluctuation levels are minimal in order to avoid losing your money.

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I'm trying to get a pip count for these numbers. A "pip" is a term used in forex/futures trading that counts a one point change in the smallest decimal value of the trading instrument.

I have a column of various trading instruments, and luckily they all either have 2 decimals or 4 decimals in the "Entry Price" column. https://i.imgur.com/CIyiOLC.png

I can capture the pip count by taking the difference in the Entry Price and Last Price, for example, but it returns a decimal value which is shown in "Target Hit Diff." and "Pivot Hit Diff."

I need to write a formula that changes these decimal values to whole number values that states: IF decimal count of A2 = 2, multiply F2 by 100. If decimal count of A2 =/= 2 multiply F2 by 10000

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I have a column of various trading instruments, and luckily they all either have 2 decimals or 4 decimals in the "Entry Price" column. https://i.imgur.com/CIyiOLC.png

I can capture the pip count by taking the difference in the Entry Price and Last Price, for example, but it returns a decimal value which is shown in "Target Hit Diff." and "Pivot Hit Diff."

I need to write a formula that changes these decimal values to whole number values that states: IF decimal count of A2 = 2, multiply F2 by 100. If decimal count of A2 =/= 2 multiply F2 by 10000

Learn how to calculate pip value of you acount. If your trading account currency is in USD, calculating the pip value is straight forward. Simply, when the USD is listed second in a pair the pip value is fixed and doesn't change, Pip Value Formula The standard pip value for a USD-based account and USD-quoted currency pairs (EUR/USD, GBP/USD, AUD/USD, etc.) is $10 for one standard lot. But many beginning Forex traders soon stumble upon non-USD currency pairs (USD/JPY, USD/CHF, or more difficult – EUR/JPY, EUR/CHF) or non-dollar based accounts. If the price moves 1 pip from 1.00000 to 1.00010, the difference of the price is 10 USD. So in this case, you have made 10 USD of profit or loss. Tip for you. 1 lot = 100,000 units 1 pip value = 10 units. The formula to calculate Pip Value. If you like to calculate a Pip Value, you my use the below formula: Pip Value = (One Pip / Exchange Rate ... In this tutorial, you will learn the formula to calculate pip value. I will also show you some tools and features on the trading platform that will do it for you automatically. Calculating pip value for a currency pair. The pip value is dependent on the trading volume and the current rate of exchange. I will use the EURUSD for this example. When you trade one lot, you are trading 100,000 units ... Forex Pip Calculation Formula. The value of the pips for your trade can vary depending on your trading lot size. What is pips in foreign exchange rates are well defined now with formula? A standard lot (1 lot) = 100,000 units. A mini lot (1 lot) = 10,000 units. A Micro lot (1 lot) = 1000 units . A Nano lot (1 lot) = 100 units. 1) If USD is the quote currency, use below formula (Example: EURUSD ... Calculating Pip Value in Different Forex Pairs. Forex pips explanation. PIP is the acronym for the phrase “percentage interest point”. It’s also known as a price interest point. A forex pip is the lowest price increase for a given pair. The pip value is a unit of measurement for currency movement in the forex trade for most currency pairs. The pip between two currencies varies. However ... In foreign exchange (forex) trading, pip value can be a confusing topic.A pip is a unit of measurement for currency movement and is the fourth decimal place in most currency pairs. For example, if the EUR/USD moves from 1.1015 to 1.1016, that's a one pip movement. Most brokers provide fractional pip pricing, so you'll also see a fifth decimal place such as in 1.10165, where the 5 is equal to ... In forex trading, a standard lot is 100,000 units of the base currency. Here is a simple formula to calculate the pip value: No. of units in 1 lot x Number of lots x 0.0001 = pip value (in the quote currency) Calculation of Pip Value and Floating Profit/Loss. Here are some examples of calculating point values and floating gains and losses: The Forex pip value calculation consists of two separate formulas, but we can unify these into only one formula: (0.0001 / Current Exchange Rate) x Units Traded = Pip Value (0.0001 / 0.9920) x 100,000 Units = 10.08065 rounded to $ 10. Forex Pip Value for Cross Currency Pairs. Calculating the Forex pip value for a cross currency pair works almost the same way as with the major currency pairs ...

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HOW TO CALCULATE PIPS, PROFIT & PIP VALUE IN FOREX TRADING (FORMULA & EXAMPLES) - Duration: 10:37. Karen Foo 76,298 views. 10:37. How to Place a STOP LOSS and TAKE PROFIT when Trading Forex ... Visit Now..: https://bit.ly/31jKjcI - The Best Guide To Pip Value Formula - EarnForex The final concern to ask when figuring out the pip worth of your positi... HOW TO CALCULATE PIPS, PROFIT & PIP VALUE IN FOREX TRADING (FORMULA & EXAMPLES) - Duration: 10:37. Karen Foo 118,810 views. 10:37 . Understanding Forex Leverage, Margin Requirements & Trade Size ... In this video, you will learn: - What a Pip is and the difference between pips and pipettes. - How to calculate a pip value - How position size affects pip v... HOW TO CALCULATE PIPS, PROFIT & PIP VALUE IN FOREX TRADING (FORMULA & EXAMPLES) - Duration: 10:37. Karen Foo 87,389 views. 10:37. 10 Legit Ways To Make Money And Passive Income Online - How To ... HOW TO CALCULATE PIPS, PROFIT & PIP VALUE IN FOREX TRADING (FORMULA & EXAMPLES) - Duration: 10:37. Karen Foo 98,538 views. 10:37. Language: English Location: United States ...

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