hi, i was looking into this strategy and wondered,
3 levels, (b) buystops (s) sellstops, assuming an equal pip distance between them
e--(b)tp(s)sl
3(b)
2(b)
1(b)
--
1(s)
2(s)
3(s)
f--(s)tp(b)sl
wouldn't a losing scenario occur when the price moves to 2(b) or 3(b), then reverses to 3(s), then reverses back to e, (b)tp(s)sl ?
or , in the reverse direction, moves to 2(s) or 3(s), then reverses to 3(b), then reverses back to f, (s)tp(b)sl?
a simple calculation to work this out, assuming distance between each interval above is 25 pips, and the default lotsize of 1
when price hits 1(b), 1 lot
(b) status, 1 - 0 lot, 2 - 1 lot, 3 - 1 lot
(s) status, 1 - 2 lot, 2 - 3 lot, 3 - 4 lot
when price hits 2(b), 1 lot
(b) status 1 - 0 lot, 2 - 0 lot, 3 - 1 lot
(s) status, 1 - 3 lot, 2 - 5 lot, 3 - 7 lot
when price reverses to 1(s), 3 lots
(b) status 1 - 1 lot, 2 - 2 lot, 3 - 4 lot
(s) status, 1 - 0 lot, 2 - 5 lot, 3 - 7 lot
when price moves to 2(s), 5 lots
(b) status 1 - 2 lot, 2 - 4 lot, 3 - 7 lot
(s) status, 1 - 0 lot, 2 - 0 lot, 3 - 7 lot
...
...
when price moves towards (e)
total pips
from stops - 5*150 + 3*125 = 1125 pips
from buys - 2*75 + 4*50 + 7*25 + 1*75 + 1*50 = 650 pips
loss of - 475 pips!
am i missing something?
3 levels, (b) buystops (s) sellstops, assuming an equal pip distance between them
e--(b)tp(s)sl
3(b)
2(b)
1(b)
--
1(s)
2(s)
3(s)
f--(s)tp(b)sl
wouldn't a losing scenario occur when the price moves to 2(b) or 3(b), then reverses to 3(s), then reverses back to e, (b)tp(s)sl ?
or , in the reverse direction, moves to 2(s) or 3(s), then reverses to 3(b), then reverses back to f, (s)tp(b)sl?
a simple calculation to work this out, assuming distance between each interval above is 25 pips, and the default lotsize of 1
when price hits 1(b), 1 lot
(b) status, 1 - 0 lot, 2 - 1 lot, 3 - 1 lot
(s) status, 1 - 2 lot, 2 - 3 lot, 3 - 4 lot
when price hits 2(b), 1 lot
(b) status 1 - 0 lot, 2 - 0 lot, 3 - 1 lot
(s) status, 1 - 3 lot, 2 - 5 lot, 3 - 7 lot
when price reverses to 1(s), 3 lots
(b) status 1 - 1 lot, 2 - 2 lot, 3 - 4 lot
(s) status, 1 - 0 lot, 2 - 5 lot, 3 - 7 lot
when price moves to 2(s), 5 lots
(b) status 1 - 2 lot, 2 - 4 lot, 3 - 7 lot
(s) status, 1 - 0 lot, 2 - 0 lot, 3 - 7 lot
...
...
when price moves towards (e)
total pips
from stops - 5*150 + 3*125 = 1125 pips
from buys - 2*75 + 4*50 + 7*25 + 1*75 + 1*50 = 650 pips
loss of - 475 pips!
am i missing something?