Fixed profit cash

• 06/05/2016 at 6:20 PM #8841
  Adolfo

  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!

  

  Adolfo

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

  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.

  

  grizzly

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

  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?

  

  Adolfo

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

  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

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  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

   

  

  grizzly

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  06/06/2016 at 7:22 AM #8864
  Nicolas

  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).

  

  Nicolas

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