Say I have two systems:Originally Posted by ;
System 1 includes a 4 hour chart in which Im risking 3 percent per trade with a stop of 100 pips. If I create 100 pips, I earn 3 percent return on my funds.
System 2 includes a 15 second chart in which Im risking 6% per trade with a stop of 25 pips. If I create 100 pips, I earn return on my funds.
Since you can see pips do not equate to dollars, yet pips are everything to new traders. System two could create 1/8 of their total pips as system one and be making the exact same amount in dollars. Do you want to create dollars, or would you would like to make pips?
Don't get too cocky though with your risk versus benefit hoping to increase your position size and at the exact same time diminishing your stop placement, or you are not going to be making pips or dollars.