Question

I am involved in trading and I need a question answered. If I have £800 and I gain 200 pips on 5 trades at a risk of 0.20 a trade how much money do I make a week?

Answer 1

200 pips is equivalent to 200% or 2 on 5 trades. So on an average their is a gain of 2/5 points per gain, which is 0.4 per trade, per day.

risk is 0.2 per trade per day

if i invest 800 in a day, equally in 5 trades, then the investment done per trade per day is 800/5 = 160/trade/day

per trade gain is 0.4/day. So, gain made in 5 trades a day is 5*((0.4) +- 0.2)

this will become 5*.4 +- 1 => 2 +- 1 => 3 or 2

If we take the average value of this gain, the it will become 2.5 per day

for 1 week, this gain will become 2.5 * 7 = 17.5.