shadowninja
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I am still unsure of the best way to record trades when trading currency pairs. I need something that covers the following scenarios:
1) I am uncertain so trade half my usual (2) lots.
2) I am very certain so double my lots to 4.
3) I trade 2 lots, after, say, 50 pips, post-news release, I close 1 lot and leave 1 lot to run.
Ignore any discussion on whether this trading method is valid. I want a way that clearly demonstrates that a specific trading system is working or not and by how much (so that I can at a later date record/monitor reward:risk ratios).
Currently, if I trade 2 lots, I would measure 1 pip to be 1 pip and record the profit or loss. If I trade double the normal lots (ie 4 lots), I would measure 1 pip to be 2 pips to signify an increased risk and increased reward. And if I close half the position then the remainder is recorded as 1 pip for every 2 pips of movement.
Otherwise, the number of pips profit (loss) would vary compared to actual money.
Thoughts, please?
(And, yes, if you hadn't guessed, my degree was in mathematics.)
1) I am uncertain so trade half my usual (2) lots.
2) I am very certain so double my lots to 4.
3) I trade 2 lots, after, say, 50 pips, post-news release, I close 1 lot and leave 1 lot to run.
Ignore any discussion on whether this trading method is valid. I want a way that clearly demonstrates that a specific trading system is working or not and by how much (so that I can at a later date record/monitor reward:risk ratios).
Currently, if I trade 2 lots, I would measure 1 pip to be 1 pip and record the profit or loss. If I trade double the normal lots (ie 4 lots), I would measure 1 pip to be 2 pips to signify an increased risk and increased reward. And if I close half the position then the remainder is recorded as 1 pip for every 2 pips of movement.
Otherwise, the number of pips profit (loss) would vary compared to actual money.
Thoughts, please?
(And, yes, if you hadn't guessed, my degree was in mathematics.)
