kwanann wrote:pips400 wrote:Hi Ray, I'm using 1 hour charts, the ADX filter is a standard Empty4 indicator, (Average Directional Movement Index), use standard settings (period 14). Again Stochastic is standard settings 5, 3, 3. Stop loss 40, and move to Break Even 30 pips. I'm now just using the TMA True, with signals at 0.4/-0.4 not 0.8/-0.8. I'm letting it run another week, but modifications may include drawing upper and lower trendlines/support and resistance/Daily Pivot, and program the EA to only open position once Price Action has broken through, which is pretty close to the 10.2 setup. I find the ADX and Stoch filters do a pretty good job of reducing whipsaw so loosers are minimised, but the setup is able to ride the bigger trends all the way until both TMA Slope and ADX reverse, which is why it netted 1600 pips in a couple of days (2000 minus 400) . But the markets wont always play so nice, so I'm guessing the final verdict on this one, will be how much drawdown/losses are suffered during the ranging periods.
Sorry I.m quite confused over the way people are mentioning pips. Does it mean the traditional non ECn pip where 1 pip equals 10$ or the ECn one where 1 pip equals 1$
You are confusing lot size with pips. A pip is always the same and has nothing to do with amount of money. For example the price of gbp/usd on a 5 digit broker is 1.57046 and a 4 digit broker 1.5704 The four is always the pip or 1/100 of a penny. On a 3 digit number like USD/JPY price is 90.932 with a 5 digit broker it would be 90.93 with a 4 digit broker, the 3 is always the pip. A pip is a fraction of a penny. That is how you can understand it in USA money. However, when you get to other currencies crosses it maybe more or less than 1/100th of a penny.
Definition: Pip stands for percentage in point. A pip is equal to 1/100th of 1 percent. In USA money 100 pips equals one penny in real money. In USD/JPY,the quotation is only taken out to two decimal points (i.e. to 1/100 th of yen)
Often beginners will quote huge pip counts when in reality they are using the 5th digit and so all their totals are times 10 too big. The fifth digit is a marketing gimmick since there is no such thing a 1/1000 of a penny but they can say we offer 1.2 pip instead of the other broker who offers 1.8 pips. When you make money and it is deposited to your account everything is rounded up (got some swamp land in Florida if you believe that one) or down to the nearest penny so you lose those last 2 or 3 numbers. No such thing as a tenth of a penny. So if you close a trade at 1.57046 in real money you will get 1.57. Banks will not deposit neither can you take out or spend a 1/10th or 1/100th of a penny. The broker or bank however, will add the mini pips and over time that will add up.
