Continue my thoughts...
How to get 1% gain per month? (We start at a very modest goal first, then we will find a way to improve it later)
It can be one of many combinations of number of trades, pip gain per trade and pip value %, for example:
1/ Pip value %= 0.01%:
1.1) 1 time x 100 pips x 0.01% per pip. or
1.2) 2 times x 50 pips x 0.01% per pip, or
1.3) 5 times x 20 pips x 0.01% per pip, or
1.4) 10 times x 10 pips x 0.01% per pip, or
1.5) 20 times x 5 pips x 0.01% per pip,
2/ Pip value % = 0.05%:
2.1) 1 time x 20 pips x 0.05% per pip, or
2.2) 2 times x 10 pips x 0.05 per pip, or
2.3) 5 times x 2 pips x 0.05 per pip
3/ Pip value % = 0.1%:
3.1) 1 time x 10 pips x 0.1% per pip
3.2) 2 times x 5 pips x 0.1% per pip
Note that mode (1) can sustain bigger unrealized pip loss, meaning a 1000-pip move against the account only make 10% drawn down, while mode (3), that 1000-pip move can cause 100% DD meaning dead.
But, we have to be right many times in mode (1) to achieve that 1% goal. So what mode or what combination is easier to achieve? I am thinking we have to predict before we start a new cycle (in this case: a month) that 'this month it will be trending' or 'this month it will be ranging'. I think a prediction like trhat is easier than like this: 'to day it will go up' or 'today it will go down' or even smaller time frame and focusing on up or down.
If we think it will be ranging we can have many small win (like (1.4) or (1.5) combination). If we think it we be trending (breakthrough) then we can wait after the break and enter bigger lot size like 0.05% per pip and see if is right. If it is not right, we have to take action fast because with bigger lot the DD grow fast.
I like the idea that we start each cycle with small pip value then when the market reveal itself more, we gradually take action accordingly.
(There are so many thoughts in my head that I need to organize so that I can have a well-developed strategy before I put it in an EA)
If you can prove that you can make money grows, tons of money will flow to you.