Do you have any tactics for dealing with the loca? - page 32
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Ok... We were looking at the ideal case where we have enough profit to fix it on the balance sheet... What if for example we have 3 positions of 1 lot at 1.2100, 1.2200 and 1.2300... The current price is 1.2200.... We want to close a profitable position at 1.2100... How do we do this in a netting system?
You can't
That's the point, there is no profit, there is nothing to fix.
You can't separate the balance from the equity.
In Timbo's words, you can't borrow at this point.
Only virtual accounting can keep track
Don't tell me your option will work here
Okay... We considered the ideal case when we have enough profit to fix it on the balance... What if for example we have 3 positions of 1 lot at prices 1.2100, 1.2200 and 1.2300... The current price is 1.2200.... We want to close a profitable position at 1.2100... How do we do this in a netting system?
Why does the trader need a balance?
We do not have any profit, because in this case the total sum of open long positions is 0, whether on the netting system or MT4.
Three options on non-netting:
1. We close the position opened at 1.21. The balance increases by 100 pips. Equity does not change. Breakeven at 1.22.
2. We close the open position at the price 1.22. The balance is in place. Equity does not change. Breakeven at 1.22.
3. We close the open position at the price 1.23. The balance is reduced by 100 pips. Equity does not change. Breakeven at 1.22.
Any of the three options is fully equivalent to closing 1 lot on netting on Equity, as Equity does not change, Breakeven at 1.22
Assume that the price has moved from 1.22 to 1.23, i.e. +100 pips. We still have 2 open long positions on each of the platforms.
Consider MT4. Regardless of the option we selected to close at 1.22, equity has increased by 200 pips = +100 pips * 2 lots.
Considering the netting platform. There is one position left open at 2 lots. Consequently, equity has increased by 200 pips = +100 pips * 2 lots as well as on MT4.
We can consider other price movements. But the point remains the same: manipulations on non-trading platforms are a waste of time as they do not influence equity and Breakeven levels in any way. I.e. all these attempts to "break" in one's favour are only balance manipulations.
Simultaneous trades with the same volume at the same prices and in the same direction on the netting and non-netting platforms are absolutely synchronous in terms of equity and changes in breakeven levels of positions.
No way
That's the point, there is no profit, there is nothing to fix.
You can't separate the balance from the equity.
In Timbo's words, you can't borrow at this point.
Only virtual accounting can keep track
Don't tell me you have a solution
Why would a trader need a balance sheet?
Balance is what we already have, while equity is what we might have if we take appropriate actions. Balance is static; equity repeats or mirrors the instrument chart. Our task is to pinch off a chunk of profit on the equity chart and fix it on the balance sheet. If this is not done, the equity graph will show the lost opportunities...
That's right, there is no way... The only solution is to wait for the profit on the aggregate position... To bring the level of cumulative position close to the current price level, you need to open the next position with larger lot, i.e. increase risk and probability of losing.... Congratulations... Great times are coming... There used to be 95% of traders who were losing deposits... Now this figure will approach 100%...
Judging by the conclusion, you still don't get it...
MT4 was kind of consumer-facing, trader-facing and it played a cruel trick
"The balance is better than equity" - this shit has been in my brain for a long time.
I am lucky for those who have started to get acquainted with the market using MT5.
OK... We were looking at the ideal case where we have enough profit to fix it on the balance... For example, if you have three open positions of 1 lot at 1.2100, 1.2200 and 1.2300... The current price is 1.2200.... We want to close a profitable position at 1.2100... How do we do this in a netting system?
You have no profitable positions, nothing to close. Loki and other balance sheet tinsel on MT4 is financial mansplaining, nirobophilia, picture-trading.
There is only one parameter - equity. And equity in your example is zero.
Balance is what we already have, while equity is what we may have, if we take appropriate actions. Balance is static, equity repeats or mirrors the chart of the instrument . Our task is to pinch off a chunk of profit on the equity chart and fix it on the balance sheet. If this is not done, the equity graph will show the lost opportunities...
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
There's no balance.
Put a fucking band-aid on a piece of the monitor
Paint it with oil paint.
♪ plywood it up ♪
You have no profitable positions, nothing to close. Loki and other balance sheet tinsel on MT4 is financial mansplaining, nirobophilia, picture-trading.
There is only one parameter - equity. And the equity in your example is zero.
Not zero, you're confusing me.
Go on from there, i.e. give a concrete example of both options:
1. Approaching the breakeven level on an aggregate position on MT4.
2. Approximation of the breakeven level of an aggregate position on netting.
Do you still naively believe that netting requires a larger lot and higher risk than MT4?
(1 lot * 1.2100 + 1 lot * 1.2200 + 1 lot * 1.2300 + 1 lot * 1.2400) / 4 lots = 1.2250
To approximate the netting level
(4 lots * 1.2100 + 3 lots * 1.2200 + 2 lots * 1.2300 + 1 lot * 1.2400) / 10 lots = 1.2200
or
(8 lots * 1.2100 + 4 lots * 1.2200 + 2 lots * 1.2300 + 1 lot * 1.2400) / 15 lots = 1.2173
Balance is what we already have and Equity is what we might have if we take action. The balance is static, the equity repeats or mirrors the instrument chart. Our task is to pinch off a chunk of profit on the equity chart and fix it on the balance sheet. If this is not done, the equity graph will show lost opportunities.