Ok its time for some math….a little reward check and why patience pays off.
First off, I looked at the current track performance, using a +150 pip take profit and 5 contracts as a benchmark. I dont want to take too much time explaining what I'm doing here so its a little better if I just show you.
Lets forget for a second about changing market conditions, forget about sentiment hooplah, forget about market obstacles, etc. – lets just quantify how to make the most out of what we do here without any ramblings.
Out of 28 trades so far, 14 (exactly half) have hit +150 pips of profit.
150*14 = 2,100 pips * 5 contracts = USD $105,000.
…but we have the other 14, so lets assume a -40 pip stop loss on those:
-40*14 = -560 pips * 5 contracts = USD $-28,000.
Add them together and you get 1,540 pips, or $77,000 for taking 28 trades. Not bad.
Now the other side of the coin. Lets say you scalp each and only take 20 pips of profit on each one. There were 26 of these.
20*26 = 520 pips * 5 contracts = $26,000
and dont forget about the other two with -40 pip stop losses.
-40*2 = -80 pips * 5 contracts = $-4,000
Add them together and you get 440 pips, or $22,000
So lets see, for about 2 months of part-time work you can have either $22,000 or $77,000. Annualize that and it comes out to $132,000 versus $462,000 per year, respectively.
But wait, it could get even better.
Of the 14 trades that never made it to +150 pips, 7 hit +50 pips of profit. We'll use the +50 pip profit mark as a benchmark for setting a stop loss to breakeven. So we do the math again, taking away 7 of the 14 trades that never made it to +150 pips of profit:
-40 * 7 = -280 pips * 5 contracts = $-14,000
Subtract that from your $105,000 of profitable trades = $91,000. Annualized that comes out to $546,000.
Just some food for thought……..