R Carter
I sent you an email asking for the Excel spreadsheet. Just in case it dropped into a spam folder
I put spaces in there so it wouldnt show up here as a link.
Appreciate it !
long weekend vacation starting today.
good luck trading y’all
notice the ‘yall’ ? yep I’m a slow Georgia boy
lol
Sorry to disagree, NOT ANYMORE, like I said, since the UBS disaster a few things changed over there. I had to found out the “hard way” (lucky me brrrrrrrrrrr) :eek:
And they are not even finished yet with changing the “sharing rules”.
Also a well known lawyer in florida had to find that out too. 
Since this thread has evolved into a discussion of tax shelters and tax avoidance, you guys might want to read a couple of articles in Mark Nestmann’s Blog:
Asset Protection BLOG - Mark Nestmann ---- then scroll down to the entries for June 1, and May 14.
Personally, I can’t even discuss taxes without resorting to profanity — so, I’ll leave you guys to it.
Clint
If we take an average stop of say 50pips, which is common on many of the 1hr/4hr strats, trading a 1% of account size trade size equates to about 5% risk doesn’t it?
No… just posted something akin to this information a bit ago actually.
Honestly, not sure why this type of info isn’t really in the babypips school. I don’t recall seeing it… but this type of question seems to be quite common. In fact, I actually had a similar question and had to come up with the formulas to figure it out my self. Though… I am sure if I looked hard enough someone has them posted somewhere… just felt it was quicker to come up with them my self at the time.
These calculations may be wrong as I am a spread better but 16 lots equates to around 16 of your base currency. So isn’t 16lots at $160 per pip?
On your example over 40pips risk, that is a potential loss of $6400 on a 10k account.
Someone… please correct me if I am wrong here… as I am quite new to this and am only used to using USD for a base currency for these calculations.
A quote is the price of the unit you are buying at 1 unit of your base currency. It is also calculated from 10,000 of the base currency (hence the number of digits in a quote). Pippets I believe are calculated based on 100,000 units of your base (not sure… this might be erroneous information). Therefore if a price was quoted at 1.9999 and it moved to 1.9998 and you had bought 1 10k lot at 1.9999 then that 10k lot would have been devalued by ~0.005% or… 0.5 of your base currency per lot. So as you can see… as the price lowers… the pip value increase and as it raises the value decreases.
Hmmm… it shouldn’t be… lets look at it… Also… I do not believe that is a 40 pip risk… it would be a 60 pippet risk… someone correct me if I am wrong there. Which would be… a 6 pip risk. It is 6… and not 4… because you have to include the spread in your risk… otherwise… you are never going to have the “edge” you actually think you do.
(|P-S|+Sp*.0001*P)/P) = This calculation should equal the percentage of change from original amount. Technically, this should be slightly different I do believe to be exact… but with the small numbers we are dealing with I believe this is sufficient without being too complex.
((|P-S|+Sp*.0001*P)/P)*L) = This should equal the dollar amount of change for a single lot if the trade were to hit the stop-loss.
(AR)/((|P-S|+Sp.0001*P)/P)*L) = This should equal the dollar amount risked divided by the dollar amount of the change of a single lots change if the trade went to the stop-loss… there by giving… the amount of lots to buy to risk the specific amount.
Again… why the hell is this information not posted in bold somewhere. It seems to be quite the common question.
well that’s odd, this is an old thread, and these new posts seem unrelated.
To answer the original question, wow has it been six months already and I still haven’t doubled. But have learned a lot that’s for sure!
well after 6 months your still here so you must be doing something right 
Why are you using 0.0001 ? 
Edit: aha, you are using mini lots???
What is a Pip? What Other Forex Trading Terms Do I Need To Know?
my first live account ever has a 100$ account to trade oil.
in 4 days i had already 400$
in 5 days i had already less than 5$
i´ve learn the hard way what is MM
to aswer your question you can double an account in 1 minute
Yeah sorry, I just brought it up because I was reading through and noting some of the comments…notably that 1% account size is not the same as risk. I have no problem with as long as it’s based on a consistent stop loss size.
However, a $1000 account, with $1 per pip trades (0.1 lot) over 50pip stop loss = 5% risk (ignores any spot forex currency conversions, etc.)
How long does it take to loose all the money in the account?
Hmmmm, actually, since the ratio is 95% to 5% looser/winners in forex, I think the answer is clear and now I just made this thread redundant. :D:D
Good point SanMiguel
As for my longevity and eventual success in forex, I thank lots of good advice from some very good traders, and especially my friend RCarter, who I first met in this thread.
Wow i think i have been here as long as Talon, and iam sure i read this thread before,but it looks new to me now.
I know compounding to double your account i think the magic number is 72.So if somebody says their averaging 10 percent return a month they will double their account in 7.2 months.That 72 is not written in stone, but pretty close.
Ah… thanks for the post ^^… how did I forget this page. I guess it IS there… just didn’t go back to it after… though now I am slightly confused. My impression was… 1 pip would be based on 1/10000 of the base currency no matter what type of lot is used. The *.0001 in the formula is only for converting the Spread not for anything to do with the lot sizes. An example is… if 1.17775 moves up to 1.17785… the quote price has only moved up about 1 pip (actually something like 0.009% of base currency instead of 0.01% from that move). Also a pip price from my understanding would be based on what percent of the price that 1 pip is… and would never ever be set in stone. As another example, 0.0001 movement up is a larger percentage increase if the price is 0.98878 than if it is 1.65034. In fact, the per pip price (exactly .0001 movement) is 30% larger in the smaller quote (0.98878) than it is in the larger quote. So again… even with different prices rather than just lots… one pip is STILL not equal.
Anyways… testing with your example… yes if you used 10k lots (0.1 size lots [mini lots]) the formula does come out to be less than a single lot for a 50 pip trade at 1$ risk. This would mean you would need to use smaller lot sizes to even risk an amount that small relative to that many pips (0.01 lot sizes, 1k lots, micro lots). Would still be possible if you had that lot size available to you.
I guess a better question for me is why am I posting in response to someone that obviously knows all this. Though I still stick by my answer. Your lot sizes available is adjustable depending on who your broker is and what type of account you have. Therefore, you have to take the lot size and price into account and can’t just say a pip has a specific cost because these are not set in stone.
One note on this… this would also… only be true if you were counting pips as pips… being 1/10000th or… approx. your 5th digit. Unlike you saying that in my example and the 6TH digit being pips… which from everything I read… including the babypip school page you linked would be less than a pip. From what I have seen… my understanding was that the 6th digit (1/10th of a pip) is called a pippet. Therefore, if you were counting the 6th digit a pip as you were… then yes, a 50 pip trade with 1$ and 10k lots you would be risking 5$… but… if you were counting pips as 1/10000th… then 50 pips… is a $50 dollar risk… not $5… though neither of these prices per pip are exact as they would vary based on the actual price at the time of entry.
How long it takes is a function of position size and compounding. One can double their account in 1 - 2 months with minimal risk.
it solely depends on your risk management and how much you risk in per trade and what lot size you trade. If you take more risk in lesser time you can double your account. I have seen trader doubling account in 2-3 weeks who take high risk. For moderate risk it will take 3-4 months. The first account which i doubled that took me 3 months to double it.
Hello Petefader, i would like to ask you for those resources for VSA, and any help you can provide me with support and resistance ideas, that would be great.
Many thanks
Simon