As a rule of thumb my goal is to establish a trading system, whose monthly percentage gain is between 15% and 25%, daily ~1 %. Today I got 14 pips after 5 hr sitting in front of my laptop. I don't know if this is possible consistently, but we'll see. For each $50 I increase lot size by 0.01 lots. It seems that there are going to be days when the daily pips are in red but profits are in solid green.
I guess this will be providing an emotional roller coaster for me for a couple of coming years. I have a very small account. By the way I threw all the nonsense of trading longer time frames out of the window.
Generally, I try to risk only 2% on average.
I am using a stop loss of 20 pips as a backstop, and the average win is around 10 pips. My average win percentage over 400 trades is 60%.
Does this make any sense? If not, please clarify why.
I will explain to you mathematically. You will burn your account over time.
Example: 1000 trades in a swap free and commission free account.
60% winning is 600 trades x 10pips = 6000 pips.
40% losing is 400 trades x 20pips = 8000 pips
you lose 2000pips. with lot size of 0.01. you lose $200.00. Regardless of how much money you have in your account, you will still burn it. it's just a matter of time.
However, 60% win rate with 20pips. 40% lose rate with 10pips. compound that, you will be a successful trader. Good luck.
I try not to burn my account