usdjpy
Posted: Sun Mar 25, 2007 12:25 pm
700 pips of risk on 1 standard lot(100,000) in the spot market is 9.17 dollars per pip.
700 x 9.17 = 6,419.00
700 pips is quantified from the recent high and low. (122-115)
Linear regression slope on the daily is upward sloping.
100,000 equity 1 standard lot, 700 pip fluctuation is 6.4% fluctuation with no leverage. Since the notional amount is being traded.
If you only wanted to risk 1 percent on any trade using linear regression to point to the direction of the trend.
1000 divided by 9.17 = 110 pips.
if you wanted to risk 1% but wanted greater buffer in pips if you cut the lot size to 5 minilots(10,000 each) now you've increased the pip deviation to 220 pips on 1 percent move in equity using 5 minilots.
The current price is 118.00 or 300 pips above 115. cutting the minilot size down to 2.5 x 440 pips offers you 140 pips buffer zone on the bottom of the range. Whats the reward?
Since current price is 118, upper border is 122, 400 pips reward almost 1:1 R:R(risk:reward).
This takes into account 1% risk limit per trade and 1% reward outlook based on the markets recent high and linear regression implied trend projection.
700 x 9.17 = 6,419.00
700 pips is quantified from the recent high and low. (122-115)
Linear regression slope on the daily is upward sloping.
100,000 equity 1 standard lot, 700 pip fluctuation is 6.4% fluctuation with no leverage. Since the notional amount is being traded.
If you only wanted to risk 1 percent on any trade using linear regression to point to the direction of the trend.
1000 divided by 9.17 = 110 pips.
if you wanted to risk 1% but wanted greater buffer in pips if you cut the lot size to 5 minilots(10,000 each) now you've increased the pip deviation to 220 pips on 1 percent move in equity using 5 minilots.
The current price is 118.00 or 300 pips above 115. cutting the minilot size down to 2.5 x 440 pips offers you 140 pips buffer zone on the bottom of the range. Whats the reward?
Since current price is 118, upper border is 122, 400 pips reward almost 1:1 R:R(risk:reward).
This takes into account 1% risk limit per trade and 1% reward outlook based on the markets recent high and linear regression implied trend projection.