Quote:
Originally Posted by andyfx
I know people say that Pips mean nothing. Well i disagree totally. Weather i had a 1$ lot size or a 100$ it means that you are in profit, no matter what size. And this is a very hard place to be consistantly as i understand.
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Being profitable isn't the point. It's about providing something that people can actually use as a basis of comparisson.
If I told you I made 10 points trading stocks today you might think that sounds great. But what if it was 1 point each on 10 different stocks I was holding at once? That doesn't sound quiet so great anymore, does it? That's the equivalent of pip counts I've seen where someone adds up the pips from all simultaneously open positions (or multi-counting pips on multiple lot size trades).
If I told you I made $10,000 trading today I'm sure that would sound amazing to many traders. But if I'm running a $10 mln portfolio it suddenly doesn't sound so impressive.
Further, what if I'd had to risk 10 times what I made to secure those profits? Again, definitely not very appealing.
All this is why we have performance statistics like win %, win/loss ratio, % return, max % drawdown, and R - so people can compare apples to apples.