Ring - page 32
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And open at the best price (buy cheap, sell expensive). Maybe that makes sense, we have to check it out.
Where will this "better price" come from if it is already worse by the spread?
The new price is better than the price of a closed losing position by the step of the grid.
And if it moves in the opposite direction "by the grid size"?
;)
I was of the same opinion, but as practice has shown, it is more reliable and profitable to close a plus position and immediately open it, otherwise an unclosed plus position can turn into a loss, and at best it can turn into a breakeven, and so you already have something on your balance.
And then an open position can't turn into a loss, surely?
If price makes a move in a profitable direction, there will be a profit and a new position is opened.
Where will the profit come from if the trade is closed on SL ?
Friends, let's monitor already!
:))
Yes, that's right. And since we are not guessing the direction of the trend when we are in a market-neutral position, we are simply trading volatility.
Folk wisdom: The very moment a position becomes unbalanced, it will no longer be market neutral.
No thanks.
And then an open position can't turn into a loss, of course?
Of course it can, but there is already some profit, which partly covers the loss, and this loss is smaller than not closing the first one. Also, it should be understood that a newly opened position may not make a loss but be immediately positive. In this case, the total profit will be less by the spread, but this is a payment for the fact that the loss could have been smaller.
Caught you in the act? Good for you.
It's got nothing to do with the catch. I see the comrades are losing touch with reality, so I'm trying to sober them up a bit. ;)
The idea is that if price continues to move in a profitable direction, the gains from pyramiding will outweigh the losses.
The key word in this sentence is "if".