Fixed profit cash

Adolfo · 2016-06-05T17:20:36+00:00

Hello everyone. I’ve a question for you. If we set a fixed profit on $ / €. 100 … for example, if we buy one contract, we need the price to move 100 pips in our favor to get to our benefit, well, so if we win some ones, possibly next ones need the price to move only 50, and then 33 .. to reach our 100$ so as the account grows we need fewer pips and thus increase the chances of success. I’ve been testing this in a strategy and what happens is that at first trades many candles are needed to achieve our goal, but after a few winners, there are fewer to the point where most of the profits we get in the same candle. Once the account has grown enough and for example we buy 25 contracts, the real goal to reach 100 € / $ will be 4 pips (+ – spread) and although of course the backtest we say it is excellent, the question is, Does it give you any confidence? Greetings!

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06/05/2016 at 6:20 PM #8841 quote

Adolfo
Participant

Senior

Hello everyone. I’ve a question for you.
If we set a fixed profit on $ / €. 100 … for example, if we buy one contract, we need the price to move 100 pips in our favor to get to our benefit, well, so if we win some ones, possibly next ones need the price to move only 50, and then 33 .. to reach our 100$ so as the account grows we need fewer pips and thus increase the chances of success.

I’ve been testing this in a strategy and what happens is that at first trades many candles are needed to achieve our goal, but after a few winners, there are fewer to the point where most of the profits we get in the same candle. Once the account has grown enough and for example we buy 25 contracts, the real goal to reach 100 € / $ will be 4 pips (+ – spread) and although of course the backtest we say it is excellent, the question is, Does it give you any confidence?

Greetings!

06/05/2016 at 10:57 PM #8854 quote

grizzly
Participant

Average

Hi Adolfo

With such a small pip target (+4) ; the back testing results become a little hard to believe especially if the profit is on the same candle.

if you include something like (barindex-trade index>=1) and ProfitTarget >100$ then it will make it more robust.

06/05/2016 at 11:16 PM #8855 quote

Adolfo
Participant

Senior

I know, just wondering how can probabilities grow up if you do this. It,s esaier to get 4 points than 100. The only diference to get 100$ is join with 1 or 25 contracts isn’t it. Does it have any sense?

06/05/2016 at 11:56 PM #8856 quote
grizzly
Participant

Average
You could try something like those:
```
TargetProfit = 100 //$

N = 25 // Position sizes from 1 to 25

ExitPoint = (TargetProfit/N)*pipsize

if longonmarket and positionperf(0)>0 then

Sell N at ExitPoint stop

elsif shortonmarket and positionperf(0)>0 then

exitshort N at ExitPoint stop

endif
```
06/06/2016 at 7:22 AM #8864 quote

Nicolas
Keymaster

Legend

If your point value is different from 1$/point, you may change the calculation in order to reflect this (POINTVALUE is your friend in this case).
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