% Based TP Calculation

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lytnin
  • updated
  • Under review

Hi All,

So currently there are 3 ways to close a trade based on %:

Global % Target

Sum % Take profit

Partial Close - Minimum profit % to close

These are seriously power tools, specifically if you're looking to scale and compound your profit properly.

These all work as intended, except for when running multiple pairs together, because as per my understanding, this is calculated on the current balance.

Running multiple pairs results in the balance increasing which in effect increases the profit target for the other pairs indirectly.

let me explain with an example:

  • Starting Balance is $100
  • EURUSD and GBPUSD open a trade with a 10% target equivalent to $10
  • EURUSD reaches that target.
  • GBPUSD now needs to hit a higher profit target as now 10% of $110 is $11.

As you can see this can get problematic. If you have 5+ pairs trading, the profit target will keep moving higher and higher.

So my suggestion is to have an option to fix the target at time of open. Global % Take profit would be the only exception to this, and wouldn't really need it.

Thanks!

Replies 3
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lytnin

I've been thinking about the best way to do this. In my opinion, it should check the oldest active position in the batch that it wants to close, and close based on the percentage of when it was opened. That way, we could probably have a toggle for both sum tp and partial close.

what do you think?

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Andrey Khatimlianskyi
  • Under review

Sounds like overkill to me.

Other pairs may also make a loss rather than a profit, and this will reduce the target.

Maybe you want to fix the Sum TP size in points, as we can already do with Partial Close?

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lytnin

we can scrap this idea... i think that most solutions for this will be overkill.

the real solution would be multi-currency trading as the scenario described above only really happens when we have multiple EAs running together.