how to set forex’s pip/tick step and size?

Hello,everyone!

I am not very familiar with forext trading. So I’m confused by the pip/tick setting in SQ3.

the usd/jpy price is  119.715/119.737

how to set the pip/tick values of usd/jpy in SQ3.8.1?

And I set the eur/usd as below:

point value in $: 100,000   ,pip/tick step  0.00001, pip/tick size is 0.0001.  

Is eur/usd setting right or not? 

the help file, I think is out of date.

File: QQ图片20151008145703.png

Hi,

i use this values, USDJPY should be same as EURJPY for Ducascopy data.

Patrik

File: values.png

If you use standard forex broker then you should use this setting for USD/JPY:

Point value: $10000

Size: 0.01

Step: 0.001

If you use standard forex broker then you should use this setting for USD/JPY:Point value: $10000

Size: 0.01

Step: 0.001

Mark are you sure? I use point value 834$ for USDJPY…

sorry, point value for USDJPY should be $1000, not $10,000

Very simplified explanation:

Point value of $1000 means that 1 point (for example movement from 82.45 to 83.45 has this value in $. So if you trade 1 lot, this 1 point move would be $1000.

If the price moves by 1 pip:

– 1 pip = 0.01 point for USDJPY, because Pip Size = 0.01.

– If you trade with 1 lot, then 1 pip movement has value of $10, it is computed as: 0.01 * $1000 = $10.

– If you trade with a different lot size, then value of 1 pip  it is computed as: Lots * Point value * Pip Size = 0.1 * 1000 * 0.01 = $1

The reason why you set EURJPY Point value to $834 is probably exchange rate between EUR and USD. Currency values are always in the currency of the given pair, so move of 1 pip in EURJPY is 1 Eur.

If your account is in USD, then you should convert this 1 EUR to USD.

But I personally always use Point Value = $1000 for JPY based pairs, because it s not that important what is the result in USD. It is important what is the result in the pair currency.

But when i build a portfolio, i want to know how big the DD was as exact as possible.

If portfolio is both EURJPY and EURUSD strategies the DD will be counted wrong way. I need to use same currency for portfolio counting. For building it han no impact.

So from this reason is better to use point value in ONE currency for all pairs to get the right ratio. 

also, when you retest the strategy after in MT4, you will get different result and the only reason will be wrong point value.

patrik

Thank you, Mark.

It’s more clear now.

And also thanks to Patrick for your response.