Chaos TP Switching (in opened position) | Forex Factory

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Chaos TP Switching (in opened position)

  • #1
  • First Post: Jun 5, 2007 2:38am Jun 5, 2007 2:38am
Hello,
while learning about grid trading, the idea poped up, it is old mathematic,
if :a, b, c is position price (buy),and x, y, z is tp level

profit
= (x-a) + (y-b) + (z-c)
= (x+y+z) - (a+b+c)

seeing that, i realized that TP (if in the end all reached) can be switched at will.
even more, we can take the loosing one first.

rule: 1 pair, 1 way, same lot size

simmilar with :
calculating multi position Break Even Point
  • #2
  • Jun 5, 2007 5:20am Jun 5, 2007 5:20am
Hi Gwan!

Could you post an example (with a chart, if possible)?
I think that I understand you but, I'm not sure.

Thanks for sharing!

FXS
  • #3
  • Jun 5, 2007 9:40pm Jun 5, 2007 9:40pm
Quoting FXSurfer
Hi Gwan!

Could you post an example (with a chart, if possible)?
I think that I understand you but, I'm not sure.

Thanks for sharing!

FXS
sorry i don't think i can explain it with chart
here's example :
we have 4 open buy in usd-jpy, and profit target reached
@121.00 TP 121.20...........profit = 20
@121.20 TP 121.40...........profit = 20
@121.40 TP 121.60...........profit = 20
@121.60 TP 121.80...........profit = 20
Total profit = 80pip

now lets switch it
@121.00 TP 121.40...........profit = 40
@121.20 TP 121.80...........profit = 60
@121.40 TP 121.60...........profit = 20
@121.60 TP 121.20...........profit = -40
Total profit = 80pip

in math:
profit =TP - price
= (121.20+121.40+121.60+121.80)-(121.00+121.20+121.40+121.60)
= (486.00) - (485.20)
= 0.80 (price difference) or 80 pip

conclusion : there are bond between opened position.
  • #4
  • Jun 6, 2007 4:07am Jun 6, 2007 4:07am
You certainly know how to think in terms
of taking advantage of trading in mulitple
lots! To be able to take the loss, maybe
first before the move takes off, could be a nice
cushion. Well Done!


FXS

Also: I like your avatar. Did you draw it?
  • #5
  • Jun 6, 2007 5:21am Jun 6, 2007 5:21am
Quoting FXSurfer
You certainly know how to think in terms
of taking advantage of trading in mulitple
lots! To be able to take the loss, maybe
first before the move takes off, could be a nice
cushion. Well Done!


FXS

Also: I like your avatar. Did you draw it?
thank you , thank you, you really know the word between the line,
yes, it makes me easier to take loosing step in calculated way.

yes it is hand drawn with a bit finishing touch
  • #6
  • Jun 6, 2007 12:47pm Jun 6, 2007 12:47pm
Quoting Gwan
Hello,
while learning about grid trading, the idea poped up, it is old mathematic,
if :a, b, c is position price (buy),and x, y, z is tp level

profit
= (x-a) + (y-b) + (z-c)
= (x+y+z) - (a+b+c)

seeing that, i realized that TP (if in the end all reached) can be switched at will.
even more, we can take the loosing one first.

rule: 1 pair, 1 way, same lot size

simmilar with :
calculating multi position Break Even Point
Hello Again, Gwan!
I searched for grid trading here on the forum after seeing it
in your post.
This one looks interesting:

http://www.forexfactory.com/showthre...t=grid+trading

Do you have a few thoughts on this trading method?


FXS
  • #7
  • Jun 6, 2007 9:07pm Jun 6, 2007 9:07pm
Quoting FXSurfer
Do you have a few thoughts on this trading method?


FXS
oh, once upon a time i try to think from another side, here's the result

http://www.forexfactory.com/showthread.php?t=26748

basically, i seeking how much lot i can maintain in dailly basis.
some are true but useless, but i just lazy to edit it

as far as i find, grid trading is more effective with money management, than fancy technical analysis.
other than switching TP, calculating margin, and searching break even point of some open position, i don't think there is much difficult math involved.

ah , yes, i combine grid with carry trade, it work along just fine if spreaded thin enough.

ps: just be flexible with your trading system. flexibility granted from small lot size.
  • #8
  • Jun 6, 2007 10:35pm Jun 6, 2007 10:35pm
By Gwan


Quote
ps: just be flexible with your trading system. flexibility granted from small lot size.

I never pass by a post by Gwan. They are so practical and make so much sense that I often wonder, "How come I didn't know that already?"
I traded mini accounts for two years and still do, but thanks to Gwan's posts I now trade micros also. Gives me the flexibility to experiment with different ways of scaling in and out of trades without a lot of risk. I sleep better now.

I need to say again, Thanks Gwan, and all the best.
  • #9
  • Jun 7, 2007 3:32am Jun 7, 2007 3:32am
Quoting billflet
"How come I didn't know that already?"

I traded mini accounts for two years and still do, but thanks to Gwan's posts I now trade micros also. Gives me the flexibility to experiment with different ways of scaling in and out of trades without a lot of risk. I sleep better now.

I need to say again, Thanks Gwan, and all the best.
thank you, thank you, your words exceed my reputation, there are many member here in FF that pin point the importance of starting small,
i just echo their word, around the forum .
  • #10
  • Jun 16, 2007 12:38pm Jun 16, 2007 12:38pm
Quoting Gwan
sorry i don't think i can explain it with chart
here's example :
we have 4 open buy in usd-jpy, and profit target reached
@121.00 TP 121.20...........profit = 20
@121.20 TP 121.40...........profit = 20
@121.40 TP 121.60...........profit = 20
@121.60 TP 121.80...........profit = 20
Total profit = 80pip

now lets switch it
@121.00 TP 121.40...........profit = 40
@121.20 TP 121.80...........profit = 60
@121.40 TP 121.60...........profit = 20
@121.60 TP 121.20...........profit = -40
Total profit = 80pip

in math:
profit =TP - price
= (121.20+121.40+121.60+121.80)-(121.00+121.20+121.40+121.60)
= (486.00) - (485.20)
= 0.80 (price difference) or 80 pip

conclusion : there are bond between opened position.
what happened to transactions costs?
  • #11
  • Last Post: Jun 17, 2007 9:09pm Jun 17, 2007 9:09pm
Quoting dunningduke
what happened to transactions costs?
in this arrangement, the transaction cost will be the same because we don't add or decrease lot size, just re order the taking profit point.

and when some of the open have been closed, we can switch TP of the remaining open with another newly opened TP position.
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