For the first question, I'd check out Robert Carver's book Systematic Trading, which goes into great detail on volatility / risk / reward management, maybe more detail than you'd expect from an average trading book.

Pip will be the smallest increment of the price you would see on the ticker feed. The configuration of PipCost depends on 1) your pip configuration and 2) whether you're using T8 (Contracts) or T6 (vanilla bars) for backtesting. The former makes use of the Multiplier value, and the latter is rather multiplied into PipCost.