Stop Counting Pips. Start Measuring Real ProfitBitcoin / U.S. dollarBITSTAMP:BTCUSDTrade-TechniqueStop Measuring Your Trading Performance in Percentages or Pips Most traders track their performance the wrong way. They obsess over pip counts, celebrate percentage returns, and compare account balances. None of that tells you whether you are actually trading well. Today I want to show you a better way to measure your results, one that professional traders and prop firms actually use. This article is written for shorter-term traders who typically hold one to three positions at a time. If you manage a diversified stock portfolio or a hedge fund with dozens of assets, this may not apply directly to you. But if you are a retail trader managing your own account, read this carefully because it will change how you look at your performance. Why Percentages and Pips Are Misleading Here is the problem with measuring returns in percentages. A 100% return on a $500 account means you made $500. A 20% return on a $50,000 account means you made $10,000. Which trader performed better? The percentage says the first one. The reality says the second one. Percentages look impressive on paper but they do not reflect the actual skill or risk involved in making those returns.