Forex Math Rules

for any pair YYYXXX; (YYY: base currency, XXX: quote currency)
((1)) Range
Daily Range=141*YYYXXX,
Example: EURUSD now is 1.07222
Range = 141*1.07222 = 151 pips
141 is 100 multiplied by square root of 2.

((2)) Swing rule:
Swing = 100* cubic root of days number multiplied by YYYXXX.
swing = 100*(days)^(1/3)*YYYXXX
Example: you buy EURUSD at 1.06222 three days ago.
Swing = (3)^(1/3)*1.07222 = 154.6 PIPS

(3) pip value
For any pair YYYXXX with acounT deposit currency is DDD:

Pip Value = 10*Lots*XXXDDD

((4)) Reserved Margin Calculations
for any pair YYYXXX, with deposit currenct DDD:
RM = C*Lots*YYYDDD

C: is your terminal constant = 100,000/Leverage.

Cool stuff!
But what happened to Fibonacci?

Fibonacci died 784 years ago

(3) pip value
For any pair YYYXXX with acounT deposit currency is DDD:

Pip Value = 10*Lots*XXXDDD

=========
((4)) P/L Calculations:
if u know pip value for any pair YYYXXX, then u can calc. for its P/L:

P/L = 10*Lots*XXXDDD * PipsEarned

((5)) After who many pips I will receive margin call??
what is the general rule regardless of my broker, regardless of leverage, regardless of stop-out level, regardless of pair name , etc . .

((Ans))

I = (B-S*C*Lots*YYYDDD)/(10*XXXDDD*Lots)

I = Margin Pips
B: Initial Balance
S: your broker stop-out level (a constant value that u should new before you trade with this broker)
C: your Terminal constant for each pair C=100,000/ Leverage
YYYDDD: BaseCurrency YYY against your account DominatingCurrency DDD. (Margin Calc. see post# 2)
XXXDDD: QouteCurrency XXX against your account DominatingCurrency DDD. (pip value Calc. see post# 3)
Lots: your Opened Poistion Lots

=== see next example ===

For next 7 examples, your account currency is USD. DDD=USD.

Q5-A)) when you will receive a Margin Call on pair named "EURUSD" ?

Answer Q5-A) Since YYYXXX=EURUSD
YYY=EUR -- XXX=USD -- DDD=USD

I = (B-S*C*Lots*YYYDDD1)/(10*XXXDDD2*Lots)

I = (B-S*C*Lots*EURUSD1)/(10*USDUSD2*Lots)

USDUSD = USD/USD=1, hence for mini-lot, pip value for EURUSD = 1 USD

I = (B-S*C*Lots*EURUSD1)/(10*1*Lots)

I = (B-S*C*Lots*EURUSD1)/(10*Lots)

then EURUSD when MaginCall occures is:
EURUSD2=EURUSD1(+or-)I/10000

for Buy use "-"
for Sell use "+"
==
for Sell
EURUSD2=URUSD1+ (B-S*C*Lots*EURUSD1)/(10*Lots)/10000
EURUSD2=URUSD1+ (B-S*C*Lots*EURUSD1)/(100,000*Lots)
EURUSD2=URUSD1+ (B/Lots-S*C*EURUSD1)/(100,000)
BL=B/Lots
EURUSD2=URUSD1+ (BL-S*C*EURUSD1)/(100,000)
EURUSD2=URUSD1(1-S*C/100,000)+BL/100,000
C/100000=1/Leverage=1/R
EURUSD2=URUSD1(1-S/R)+BL/100,000

EURUSD1 ENTRY PRICE
EURUSD2 EXIT PRICE

ERUSD2=URUSD1+ (B-S*C*Lots*EURUSD1)/(100,000*Lots)

and similarly for any pair YYYXXX=YYYDDD,

for GBPUSD: GBPUSD2=GBPUSD1(1-S/R)+BL/100,000
for AUDUSD: AUDUSD2=AUDUSD1(1-S/R)+BL/100,000
for NZDUSD: NZDUSD2=NZDUSD1(1-S/R)+BL/100,000

Q5-B)) when you will receive a Margin Call on pair named "USDCAD" ?

Answer Q5-B) Since YYYXXX=USDCAD
YYY=USD-- XXX=CAD -- DDD=USD

I = (B-S*C*Lots*YYYDDD1)/(10*XXXDDD2*Lots)

I = (B-S*C*Lots*USDUSD1)/(10*CADUSD2*Lots)

USDUSD = USD/USD=1,
CADUSD=1/USDCAD

I = (B-S*C*Lots*1)/(10/USDCAD2*Lots)

Hence, the simplest rule of I = 10000*(USDCAD2-USDCAD1) which is P/L in pips
I = (B-S*C*Lots*EURUSD1)/(10*Lots)
so
10000*(USDCAD2-USDCAD1) = (B-S*C*Lots*1)/(10/USDCAD2*Lots)

10000*(USDCAD2-USDCAD1) =USDCAD2 (B/Lots-S*C)/(10)
100000*(USDCAD2-USDCAD1) =USDCAD2 (BL-S*C)
100000*USDCAD2-USDCAD2 (BL-S*C) =100000*USDCAD1
USDCAD2-USDCAD2 (BL/100000-S*C/100000) =USDCAD1
USDCAD2+USDCAD2 (S*C/100000-BL/100000) =USDCAD1
USDCAD2+USDCAD2 (S/R-BL/100000) =USDCAD1
USDCAD2(1+S/R-BL/100000) =USDCAD1
USDCAD2 =USDCAD1/(1+S/R-BL/100000)

and similarly for any pair YYYXXX=DDDXXX,

for USDCHF: USDCHF2= USDCHF1(1-S/R)+BL/100,000
for USDJPY: USDJPY2 = USDJPY1 (1-S/R)+BL/100,000

and as a general rule,

I = (B-S*C*Lots*YYYDDD1)/(10*XXXDDD2*Lots)
AND:
I=10,000(YYYXXX2-YYYXXX1)

SO:

10,000(YYYXXX2-YYYXXX1) = (B-S*C*Lots*YYYDDD1)/(10*XXXDDD2*Lots)

YYYXXX2-YYYXXX1 = (B/Lots-S*C*YYYDDD1)/(100,000*XXXDDD2)

YYYXXX2-YYYXXX1 = (BL-S*C*YYYDDD1)/(100,000*XXXDDD2)

YYYXXX2-YYYXXX1 = BL/(100,000*XXXDDD2)-S*C*YYYDDD1/(100,000*XXXDDD2)


YYYXXX2-YYYXXX1 = BL/(100,000*XXXDDD2)-S*YYYDDD1/(R*XXXDDD2)

(YYYXXX2-YYYXXX1) *XXXDDD2= BL/100,000-S*YYYDDD1/R

=======

GBPUSD on x-axis
USDCHF on y-axis
GBPCHF on z-axis

Also, we must generalize the rule in #13

when YYYDDD1 goes up by P pips, we get new price at YYYDDD2
and
when XXXDDD1 goes up by U pips, we get new price at XXXDDD2
then
YYYXXX1 goes up by I pips, TO get new price at YYYXXX2

always:
YYYXXX=YYYDDD/XXXDDD = YYYDDD*DDDXXX
======================
YYYXXX1=YYYDDD1*DDDXXX1
YYYXXX2=YYYDDD2*DDDXXX2
===================================
YYYXXX2=YYYXXX1+I = YYYDDD2*DDDXXX2 = (YYYDDD1+P)(DDDXXX1+U)

YYYXXX1+I = (YYYDDD1+P)(DDDXXX1+U)
YYYXXX1+I = YYYDDD1*DDDXXX1+YYYDDD1*U+P*DDDXXX1+P*U
YYYXXX1+I = YYYXXX1+YYYDDD1*U+P*DDDXXX1+P*U

I = YYYDDD1*U+P*DDDXXX1+P*U

ignore P*U, it should be very small value,

I = U*YYYDDD1+P*DDDXXX1

Normalize to terminal:
I/10,000 = U*YYYDDD1+P*DDDXXX1 = U*YYYDDD1+P/XXXDDD1
I= 10000*(U*YYYDDD1+P*DDDXXX1) = 10000*(U*YYYDDD1+P/XXXDDD1)

I = (B-S*C*Lots*YYYDDD1)/(10*XXXDDD2*Lots)
.
100000*XXXDDD2(U*YYYDDD1+P/XXXDDD1) = (BL-S*C*YYYDDD1)

XXXDDD2(U*YYYDDD1+P/XXXDDD1) = BL/100000-S/R*YYYDDD1

U*YYYDDD1*XXXDDD2+P*XXXDDD2/XXXDDD1 +S/R*YYYDDD1= BL/100000

YYYDDD1(U*XXXDDD2+S/R)+P*XXXDDD2/XXXDDD1=BL/100000

XXXDDD2/XXXDDD1 = (XXXDDD1+U)/XXXDDD1 = 1+U/XXXDDD1


YYYDDD1(U*XXXDDD2+S/R)+P*(1+U/XXXDDD1)=BL/100000

YYYDDD1(U*XXXDDD2+S/R)+P+P*U/XXXDDD1=BL/100000
P*U=0

YYYDDD1(U*XXXDDD2+S/R)+P=BL/100000
YYYDDD1(U*(XXXDDD1+U)+S/R)+P=BL/100000
YYYDDD1(U*XXXDDD1+U*U+S/R)+P=BL/100000
U*U=0
YYYDDD1(U*XXXDDD1+S/R)+P=BL/100000

Q-1) Why the P/L of AUDJPY below is exactly 20.37 USD?

Ans: see post#6 ---- pair is YYYXXX=AUDJPY

P/L = 10 * Lots * XXXDDD * PipsEarned = 10 * Lots * JPYUSD * PipsEarned

Concentrate: JPYUSD, not USDJPY, since: YYY=AUD, XXX=JPY, DDD=USD.

USDJPY is the reciprocal of JPYUSD
USDJPY=1/JPY USD ------------ or JPYUSD=1/USDJPY

P/L = 10 * Lots * XXXDDD * PipsEarned = 10 * Lots / USDJPY * PipsEarned

pips Earned is 46.2 pips (84.180 - 83.718)

USDJPY now is 113.355 (mentally is 1.13335)

P/L = 10 * Lots /USDJPY * PipsEarned = 10 * 0.05 / 113.355* 46.2 = 20.37 USD as shown on pict.

OMG.