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In this video I show you how to properly calculate pip value!
First you need to figure out your Stop Loss in pips.
To do so using the ATR ( ) Indicator Watch my video on "The Best Money Manage Indicator"
After you have figured out your Stop Loss in pips you need to figure out your risk per trade. Be sure to replace 2% with whatever risk percentage you use.
Risk - 2%
Acc . Bal x 2%
10,000 x 2% (0.02) = $200
After you have figured out your Risk in a dollar amount you us the following formula to calculate your Pip Value.
Risk / 1.5 ATR
$200 (Risk) / 42 (1.5 ATR) = $4.76 (Pip Value)
You Can Keep It So It's $4.76 per Pip or, You can Round Up to $4.80 or Round Down to $4.70 That is your call.
Hope this helps!
Make It a Great Day, A Profitable Week, & Happy Trading
~ SpiffyPips ~
Thanks for the heads up!