forex-scalping.com

I see traders report results like "−$300 this month, but +$450 in rebates, so I'm up". Technically true. It also hides a problem.

If rebates make you profitable, your strategy isn't profitable. Your volume is. That matters because:

• Rebate programmes change or end, often with short notice.
• Volume-based income encourages more trades, which is exactly what most struggling scalpers need less of.
• You can't scale it the same way. Bigger size increases loss in R faster than rebate in dollars.

How I handle it now: rebate per lot is subtracted from commission when I calculate cost per trade. So if commission is $7 per lot round turn and I get $1.50 back, cost is $5.50 in my expectancy calculation. That figure goes into the R calculation for every trade.

Then I look at expectancy two ways:

1. Without rebate at all, as a stress test: would the strategy survive if the programme stopped tomorrow?
2. With rebate built into cost, as the real current number.

If number 1 is negative and number 2 is barely positive, I treat the strategy as on probation.

Does anyone report rebates separately for a reason I'm not seeing? Happy to be challenged on this.