How to close the last trade EXACTLY at the open of the next trade? - page 6

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marth tanaka: I did the math--without the loss of the closed order as you mentioned and that is EXACTLY why I am trying to close the last trade on the open of the next one because it would solve this problem. Cheers.

If you really want to "double down", then just do it the way it has always been practiced, and that is to simply factor in the spread loss when calculating the new position size of the second order (without closing the first).

It is only when you "hedge" (same symbol, opposite direction), that closing the first order helps reduce the exposure.

 
marth tanaka: A code example would be fantastic!
I did not say a code example, but an example of the order sequence:
  1. Lets say that you Sell at 1.2100 (Bid = 1.2100, Ask = 1.2102, Spread = 2 pips).
  2. Price goes against you and so you place second Sell order at 1.2103 (Bid = 1.2103, Ask = 1.2105, Spread = 2 pips).
    However, you cannot close the first order because the Ask is above the open of the second order and you want to only close it once the Ask is at 1.2103
  3. But price does not reverse and continues to clime to (Bid = 1.2105, Ask = 1.2107, Spread = 2 pips).
  4. Still price climes more to (Bid = 1.2108, Ask = 1.2110, Spread = 2 pips).
  5. And it continues to clime ...
  6. So, you are left with the first order still open, because the Ask price has never come down to the 1.2103 price that you want to use.
    Obviously you can still close it at any point at the Ask price (with the spread loss), but you stated that you wanted to close it ONLY at the same price as the open of the other order.
 
Fernando Carreiro:
I did not say a code example, but an example of the order sequence:
  1. Lets say that you Sell at 1.2100 (Bid = 1.2100, Ask = 1.2102, Spread = 2 pips).
  2. Price goes against you and so you place second Sell order at 1.2103 (Bid = 1.2103, Ask = 1.2105, Spread = 2 pips).
    However, you cannot close the first order because the Ask is above the open of the second order and you want to only close it once the Ask is at 1.2103
  3. But price does not reverse and continues to clime to (Bid = 1.2105, Ask = 1.2107, Spread = 2 pips).
  4. Still price climes more to (Bid = 1.2108, Ask = 1.2110, Spread = 2 pips).
  5. And it continues to clime ...
  6. So, you are left with the first order still open, because the Ask price has never come down to the 1.2103 price that you want to use.
    Obviously you can still close it at any point at the Ask price (with the spread loss), but you stated that you wanted to close it ONLY at the same price as the open of the other order.
Yes this makes perfect and clear sense. What about futures? There is not any spread in futures right? Correct me if I am wrong--I have never traded futures before. Also thank you for your patience in this conversation for my understanding.
 
marth tanaka: Yes this makes perfect and clear sense. What about futures? There is not any spread in futures right? Correct me if I am wrong--I have never traded futures before. Also thank you for your patience in this conversation for my understanding.
Have you ever heard of something called "Commission" or "Brokerage Fees"?
 
marth tanaka:
Yes this makes perfect and clear sense. What about futures? There is not any spread in futures right? Correct me if I am wrong--I have never traded futures before. Also thank you for your patience in this conversation for my understanding.
Of course there is a spread on Futures.
 
Alain Verleyen: Of course there is a spread on Futures.

You have much more experience with Futures than I have, but I have seen many brokers advertising "no spread" on Futures, but with other fees. Some even have flat fees.

 
Fernando Carreiro:

You have much more experience with Futures than I have, but I have seen many brokers advertising "no spread" on Futures, but with other fees. Some even have flat fees.

They don't add to market spread it's what they mean, but all markets have a spread, by definition.

That's why you don't pay the spread (private joke) :-D

 
Why are we ignoring the obvious simultaneous closing and reopening of a position for no reason? Even in a perfect world with no commissions or spreads... why??????
 
nicholi shen:
Why are we ignoring the obvious simultaneous closing and reopening of a position for no reason? Even in a perfect world with no commissions or spreads... why??????
Why not ? Honestly I don't understand your problem with that.
 
Alain Verleyen:
Why not ? Honestly I don't understand your problem with that.

Because it is a pointless operation that only wastes money via slippage, spread, and commission. 

1 + 1 = 2

1 + 2 - 1 = 2

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