Why do people guage performance in pips?

[SDC]

It was off fxmoneymap, in one of their videos it says something like if your trading the EUR/JPY, you watch the USD/JPY and EUR/USD and if both those go up at the same time the EUR/JPY will do the same, something about he big banks wanting a EUR/JPY position and not enough liquidity on that pair, so they buy two position, an USD/JPY position and EUR/USD to obtain the EUR/JPY.

I traded that for a bit, but I didn’t seem to make any headway, I used the free Metatrader version of the said indicator, with a bit of tinkering you can get that to look exactly the same as the indicator, and have all those pairs up just the same without paying the $200 a month.

So if EUR/JPY=USD/JPY+EUR/USD it’ll be EUR/GBP=GBP/USD+EUR/USD and you’ve got the added benefit of having the USD/CHF inversely correlating with the EUR/USD, this is mega profitable trading 5 minute charts, look out for areas of resistance on the GBP/USD and use the others to confirm and like Andy says - trade the gaps, it makes sense, instead of trying to work out what one currency is doing you use others as indicators, giving you a great edge.

It worked very well this IKON Royal, BUT and there is always a blinkin but, they closed all UK accounts and dwindled down to this http://forums.babypips.com/free-forex-trading-systems/33326-complete-cat-mouse-system-money-management.html#post182610

The compounding came from an investment thing I saw saying - make $3 million in 3 years not $1 million in 1 year, I think the principle was that you make $100k in the first year but the most of the $3 million in the third year, (I’m nowhere near that though :)) and also I had a pension scheme statement that I contributed to just after I left school which for a couple of years and it was amazingly healthy considering, it was the compound interest.

Put all the ingredients together and you’ve got cake.

Makes a lot of sense I’ve never tried trading corrolations but I may have to look into this further, nice explanation Purples