Counting in pips hides what matters. A 3 pip gain on EURUSD at 0.2 spread is a very different thing from 3 pips on USDMXN at 25. The unit looks the same, the economics are not.
A better unit is the ratio of target to total cost, including spread and slippage. A trade that targets 3 pips with a 1.5 pip cost has a 2:1 ratio. The same target with 0.3 cost has 10:1.
Which one would be taken more seriously by a rational trader? The second, obviously, but pip counting treats them identically.
Any serious comparison between pairs, sessions, or brokers should be done in cost-adjusted terms. Pips make everything look comparable when nothing is.
It also changes how pairs are ranked. A pair with a smaller average range but a far lower cost can offer a better net edge than a volatile one with a fat spread, and only a cost-based unit makes that obvious.
What ratio of target to cost has been the minimum for a setup to be worth taking?
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Pips are a bad unit for scalpers
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