I have a question for all the experts, when calculating pips won / lost with partial order closers. I tried to wrap my brain around this, but was not successful.
For example let’s use the [B]aud usd [/B]pair
bought aud usd @ 0.8350 . In MT4 use 1 as lot size on a $1000 account
[U]Scenario 1[/U]
Price moves to 0.8500
a. Close 0.10 of the trade
b. Move stop loss to o.8350
c. Price goes down to 0.8350 and sl is hit
What’s the total pips earned?
[U]Scenario 2[/U]
Price moves to 0.8500
a. Close 0.10 of the trade
b. Move stop loss to o.8400
c. Price goes down to 0.8400 and sl is hit
What’s the total pips earned?
[U]Scenario 3[/U]
Price moves to 0.8500
a. Close 0.10 of the trade
b. Move stop loss to o.8400
c. Price goes up to 0.8600
d. close 0.20 of the trade
e. move sl to 0.8500
f. Price goes up to 0.8800
g. close 0.20 of the trade
h. move sl to 0.8700
i. Price goes up to 0.8900 and the tp @ 0.8900 is hit
Will touch on scenario 1 .Assuming that 1 means $ 10.00 pip value and after you went to 8500 and pulled the trigger at .10 which is $ 1.00 , you sold 150 pips @ $ 1.00 1
But when I close a portion of my trade, isn’t this calculation invalid?
Let’s look at scenario 3
Bought aud usd @ 0.8350 . In MT4 use 1 as lot size on a $1000 account
Price moves to 0.8500
a. Close 0.10 of the trade (pip move 150)
b. Move stop loss to o.8400
c. Price goes up to 0.8600
d. close 0.20 of the trade (pip move 250)
e. move sl to 0.8500
f. Price goes up to 0.8800
g. close 0.20 of the trade (pip move 450)
h. move sl to 0.8700
i. Price goes up to 0.8900 and the tp @ 0.8900 is hit (pip move 550)
So if I go with your calculation total pips earned will be 1400. Even though the total pip movement was 1400, since I closed my trade partially along the way, I believe the total pips earned should be less. If didn’t close the trade partially and closed the whole trade @ 0.8900, then I agree that the pips earned is 1400. But with partial closing, it should be less.
What do you think?
I would like to add here that say your trading volume is .02 and mine is .01 and price moved to .8500 and thus both of us earning the same pips, i.e. 150 pips. No diffidence in our earnings in pips, ok?
But you will earn more profit than me since have .02 volume.
Why you are accumulating all the pips of different closed volumes? For each of your segregated volume (closed volumes), you are earning pips. Thats all.
Another question on this.
Lets say, I am on a trade 0.02 lot $1 a pip.
Bought the pair at 0.8350 and now the price is 0.8550.
I am already up by 200 pips. I decided to close 1/2 of my positions and got $200 for the 200 pips
Price didn’t move and remained at 0.8550. I then decided to close the rest of the trade @ 0.8550.
Now, I got another $200 for 200 pips
So, my total earnings are $400 for 400 pips
But If I closed my whole order at the first instance, I would have made $200 for 200 pips.
This is what I am struggling to understand. I think my calculation might be wrong. Any help please?