Counter positions: self-deception or subtle tool? - page 9
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It's always smooth on history.
History has nothing to do with it - simple arithmetic. The lock system is unambiguously translated into a netting system by elementary arithmetic of calculating the total position
there is no history here - simple arithmetic. The lock system is unambiguously converted into a netting system by elementary arithmetic of the total position calculation.
Can you draw on your fingers the algorithm of how these two independent TS work in one netting system?
By holding the buy rather than reopening it, we save on the spread.
Yeah, and with the other position (locked) we spend on the spread...
Yeah, and we make a profit that overlaps the spread.
Particularly interesting result is obtained by removing all the bai and leaving only the sells.
Netting is nervously smoking in the corridor.
how is it?
1. lock option: open buy and sell with equal lots in point A. Price moved up 10 pips in point B - closed +10 pips. Then we have fallen by 20 pips in point C - we have closed another +10 pips. Total +20 points.
2. Netting variant. We did not open at point A as we had two opposite positions with equal lots. We opened a Sell position at point B. We closed it at point C. we made +20 pips.
Option 1 does not in any way prevent you from also opening on type 2 and profiting from the two strategies, while with netting you cannot profit from 1 strategy.
Conclusion: the netting option is inherently worse.
Option 1 does not prevent you from also opening on type 2 and making a profit from the two strategies, while with netting it is impossible to make a profit from 1 strategy.
Conclusion: the netting option is inherently worse.
The other thing that bothers me is that all comparisons are strictly on history, when you can adjust the answer.
Money cannot come out of thin air and netting is the only proper form of accounting.
5 points! The sun shines 24 hours a day, so it's warmer in the south.
Look in an exchange office - they are both buying and selling.
And they're doing just fine.
Can you write on your fingers the algorithm of how two TCs work in one?
Of course. Each of the systems does not open deals by itself, but calls a general function that calculates the total lot for an instrument and which sais should be opened or closed based on this. MT5 does it by default, as any other exchange software. Again, I think it is not very convenient, because some systems need to calculate their own position, and not only the total position.
This is not an answer. The answer is: if the signal from the TS №1 is so-and-so, and from the TS №2 is so-and-so, then... otherwise... etc.
And I can wag a pointer at history and argue about the advantages of embroidery over knitting.