DislikedThe bottom line is that ANYONE can adjust their risk per trade to whatever amount they wish. They can do this from trade to trade if they wish. They can adjust how much they wish to risk per trader in pips as well. Neither of these require nor imply any trading skill at all.
Show me a trader who consistently makes 200 pips a month and another who makes 100 per month (hypothetical numbers). It doesn't matter what type of risk control or money management each is employing, the former trader is a better trader. He can always ramp up his risk to the...Ignored
Gotta disagree with you here. Pips mean nothing to me, it is all about % of account gained or lost.
Say trader A makes 3 trades this week. 2 long term trades with 150 pip stop loss and 1 short term trade with 30 pip stoploss. Each trade is worth 1% of account balance. If both long term trades are stopped out for a total of 300 pips or 2%, but the short term trade is closed out at 90 pips profit or 3%, then the trader has made 1%, but lost 210 pips.
Now, say trader B makes 3 trades also. 2 long term trades again with 150 stop loss and 1 short term with 30 pip stop loss. Both the long term trades are closed for a profit of 50 pips each, or or 0.67%. The short term trade is stopped out for 30 pips, or 1%. The trader has lost 0.33% but made 70 pips.
Which trader has done better for the week in real terms?