Figuring out how to reopen several positions after forcibly closing them

 

I am trying to figure out a situation in which I have to forcibly close positions used in a hedging trading strategy and then reopen some other positions at a different specific price which will reflect my old positions. I believe it is possible I just need to do the right calculations. If I confuse you read the example below


I have a group of positions going short (lets call it primary) and another, secondary, long (on XAU/USD).

The primary group going short opens new and new positions because the price goes long. The long positions I close after a bit of profit and open again at lower prices when there is a retracement. All positions opened are at 0.01 lots.

After two weeks the price is currently at 1984, I have to forcibly close positions (e.g. FTMO end of month switch of accounts) and the positions opened are:

0.01 lot short positions at 1920, 1925, 1930, 1935, 1942, 1949, 1956, 1964, 1972

0.01 lot long positions at 1990, 1986, 1982


I am trying to figure out how many short and long positions I have to reopen at 1984 price or even just towards one direction (e.g. short on this example) so that there is a reflection of my old scheme. 


My thinking so far is that each position has a different weight because of its opened price. For example a short position at 1920 at 0.01 should not have the same weight of a position at 1972. Or shouldn't it? 

Then I am thinking what if I reopen the positions as they were and keep in mind that the position was originally going to 1920, 1925, 1930 and so on. 

Things might be simpler that I think and I am just confused with the maths.

 

Here is the math required ...

EDIT: When combining "buys" and "sells" then use positive volume for Buy/Long and negative volume for Sell/Short.

Forum on trading, automated trading systems and testing trading strategies

Any great idea about HEDGING positions welcome here

Fernando Carreiro, 2018.09.17 21:17

For those of you that want to learn to see the "light" and not fall into the trap of "hedging" and Grid strategies, here is the basic math:

How to Calculate the Net Resulting Equivalent Order:


Learn to do your research properly! Do not be blinded by false promises. Do the math!


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