Break-even interest - page 6
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So the error is not in the maths, it's in the logic...
what is it ?
I don't know :) I've written my logic step by step - it seems to be ironclad, your version is easier to calculate, but the result is different. I assumed that maybe it's because you had an opening of 1.5, and I don't...
In the formula,lot4 = (1.50000*0.01+1.54720*0.01+1.57640*0.01-(1.57640*0.01+1.57640*0.01))/(1.57640-1.60000)
does 0.01 lot increment per level count immediately or is it just breakeven ?
I don't know :) I've written my logic step by step - it seems to be ironclad, your version is easier to calculate, but the result is different. I assumed that maybe it's because you had an opening of 1.5, and I don't...
In the formula,lot4 = (1.50000*0.01+1.54720*0.01+1.57640*0.01-(1.57640*0.01+1.57640*0.01))/(1.57640-1.60000)
does 0.01 lot increment per level count immediately or is it just a break-even?
-Aleks- : It's very difficult to explain, but I will try:
Let's drop your levels and try to calculate them at simple prices, and then instead of these prices you may use your levels or others.
Solve the two examples I have given you and then maybe you will understand the equation I have given you
we sold at 1.50000 with 0.01 lot which one has to enter at 1.51000 to close at 1.50000 and stay at zero ? Calculate, draw the levels of these prices on the chart, I can download the indicator that displays levels and lots as well as the average prices
Second example we sold at 1.50000 with 0.01 lot and the second time we sold at 1.51000 with 0.01 lot which lot should we enter at 1.52000 to close at zero at 1.51000?
If you solve these two examples you will understand my formula ...
-Aleks- : it is very difficult to explain, but I will try:
Let's drop your levels and try to calculate at simple prices, then instead of these prices you can substitute your levels or others.
Solve the two examples I have given you and then maybe you will understand the equation I have given you
we sold at 1.50000 with 0.01 lot which one has to enter at 1.51000 to close at 1.50000 and stay at zero ? Calculate, draw the levels of these prices on the chart, I can download the indicator that displays levels and lots as well as the average prices
Second example we sold at 1.50000 with 0.01 lot and the second time we sold at 1.51000 with 0.01 lot which lot should we enter at 1.52000 to close at zero at 1.51000 ?
If you solve these two examples you will understand my formula...
The answer to the first problem - do not open at 1.51 because at 1.5 you will break-even.
The answer to the second problem is 0.01.
The only task we have is to obtain profit on each pullback level.
The answer to the first problem is no need to open at 1.51 - as at 1.5 you will break even.
The answer to the second problem is 0.01.
Only our task is to make a profit on every level on the pullback.
Isn't it your problem?
"In this case zero is the current price - let it be 1.5 and 100% is the price of 1.7, the digit of 100 (for example, the price can be 1.55). If the price grows, the order opening on the levels will be on sale.
We should find the volume of the lot to be opened, so that at price movement from any level to the lower one (ideally we set for how many levels lower) all accumulated losses would be covered and the initial lot would be used for profit".
Isn't that your task?
"In this case zero is the current price - let it be 1.5 and 100% is the price of 1.7, the digit of 100 (for example the price can be 1.55). If the price grows, the order opening on the levels will be on sale.
We should find the necessary volume of the lot to open, so as the price moves from any level to the lower one (ideally we set for how many levels lower) all accumulated losses would be covered and the initial lot would be used for profit".
All right - only I confused you by the end of my offer - the point is that at every level an initial lot should be opened in addition to the "compensation" lot - so that on a pullback to the level back there would be a profit in any case. Komposter got it.
Order 4 price 1.60000 lot3 0.04 50% lot4 = (op1*lt1+op2*lt2+op3*lt3-(aw*lt1+aw*lt2+aw*lt3))/(aw-op4) + minimum lothere is an increase of 0.04
3 order price 1.57640 lot3 0.01 38.2% lot3 = (op1*lt1+op2*lt2-(aw*lt1+aw*lt2))/(aw-op3) + minimum lotlot result is 0.016 so we take 0.01 or 0.02 I do not remember exactly, but in my opinion it is rounded down to 0.02
2 order price 1.54720 lot2 0.01 23.6% lot2 = (op1*lt1-aw*lt1)/(aw-op2) + minimum lotthe result is less than 0.01 so we take 0.01
1 order price 1.50 000 lot1 0.01 0 %
Push the buttons on the calculator for you? )
Order 1: open price 1.5472, TP = 1.5000, lot = 1
Order 2: open price 1.5764, TP = 1.5472, lot = (1.5472 - 1.5472) * 1 lot / (1.5764 - 1.5472) = 0 + 1 lot for profit = 1 lot
Order 3: open price 1.6000, TP = 1.5764, lot = ((1.5764-1.5472) * 1 lot + (1.5764-1.5764) * 1 lot) / (1.6000 - 1.5764) = 292 / 236 = 1.24 lots + 1 lot for profit = 2.24 lots
Order 4: open price 1.6236, TP = 1.6000, lot = ((1.6000-1.5472) * 1 lot + (1.6000-1.5764) * 1 lot + (1.6000-1.6000) * 2.24 lots) / (1.6236-1.6000) = (528 + 236 + 0) / 236 = 3.24 + 1 lot for profit = 4.24
And so on.
Realised my mistake! I was fixing the loss in my calculation.
I got the following table for each level
Composter Order 4: open price 1.6236, TP = 1.6000, lot = ((1.6000-1.5472) * 1 lot + (1.6000-1.5764) * 1 lot + (1.6000-1.6000) * 2.24 lots) / (1.6236-1.6000) = (528 + 236 + 0) / 236 = 3.24 + 1 lot for profit = 4.24
Voldemar Order 4: Order price 1.60000 lot3 0.04 50% lot4 = (op1*lt1+op2*lt2+op3*lt3-(aw*lt1+aw*lt2+aw*lt3))/(aw-op4) From here we already go up 0.04
лот4 = (1,50000*0,01+1,54720*0,01+1,57640*0,01-(1,57640*0,01+1,57640*0,01+1,57640*0,01))/(1,57640-1.60000)
One and the same formula, only you add points... Why ? If everything is calculated without conversion to points ...
Composter Order 4: open price 1.6236, TP = 1.6000, lot = ((1.6000-1.5472) * 1 lot + (1.6000-1.5764) * 1 lot + (1.6000-1.6000) * 2.24 lots) / (1.6236-1.6000) = (528 + 236 + 0) / 236 = 3.24 + 1 lot for profit = 4.24
Voldemar Order 4: Order price 1.60000 lot3 0.04 50% lot4 = (op1*lt1+op2*lt2+op3*lt3-(aw*lt1+aw*lt2+aw*lt3))/(aw-op4) From here we already go up 0.04
лот4 = (1,50000*0,01+1,54720*0,01+1,57640*0,01-(1,57640*0,01+1,57640*0,01+1,57640*0,01))/(1,57640-1.60000)
One and the same formula, only you add points... Why ? If everything is calculated without conversion to points ...