The absurdity of a stop loss - page 26
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I meant that the loss occurs when you close exactly at sl or at tp, unlike when you close at the market
If you want to be understood, show the calculations.
The whole spread is charged to the trader strictly at the time the position is opened. Regardless of whether or not you count the trade expectation.
I see that equity is reduced by the spread at the time the position is opened. My reality is equity. That's why I believe the spread has already been taken from me. But in the end it makes no difference. Let them close.
The important thing is that there is no bifurcation of the spreadMy understanding is that it is a matter of point of view: at opening, at closing or half at opening and the other half at closing. It's not the point.
We can consider a simple example.
We have a net position in some financial instrument of X lot size. Suppose we change the position by ∆X up (or down) , then by ∆Xdown (or up). The cost of this change is easy to guess: 1 spread (more precisely ∆X* 1spread).
Now let's make the task a little more difficult. We do a series of changes, for example -1∆X+5∆X-2∆X-3∆X+1∆X. The question is, what is the cost in this case? We solve: |-1∆X|+|5∆X|+|-2∆X|+|-3∆X|+|1∆X|= 12∆X, then 12∆X*1/2spread. The answer is 6∆Xspread.
And last what will be MO if we do this series "blind", so to say (case when at eyes closing, the "third eye" is involved, we do not consider here)? The answer is MO=-6∆X spread (or 1/2spread, whichever you prefer).
I take my leave now, sorry, I'm in a hurry?
if the system is based on catching turning points . . then a stop loss can generally increase the profitability of the strategy .
I understand that it is a question of point of view: when opening, when closing, or half when opening and the other half when closing. This is not the point.
Let's consider a simple example.
We have a net position on some financial instrument with X lot size. Suppose we change the position by ∆X up (or down) , then by ∆Xdown (or up). The cost of this change is easy to guess: 1 spread (more precisely ∆X* 1spread).
Now let's make the task a little more complicated. We make a series of changes, for example -1∆X+5∆X-2∆X-3∆X+1∆X. The question is what will be the cost in this case? We solve: |-1∆X|+||5∆X|+|-2∆X|+|-3∆X|+|1∆X| = 12∆X, then 12∆X*1/2spread. The answer is 6∆Xspread.
Last, what is the MO if we do this series "blind", so to speak (we don't consider the case of "third eye" when closing the eyes)? The answer is MO=-6∆X spread (or 1/2spread, whichever you prefer).
I take my leave now, sorry, I'm in a hurry?
Another stereotype.
THERE IS NO SPREAD CHARGED. Not at all, neither at opening nor at closing. The spread is not a fee. It's the natural difference between the best buy offer and the best sell offer.
The commission is charged, not the spread. And the fact that some brokerage companies compensate their costs from the spread "for convenience" does not change anything.
The spread is set by the market, not the brokerage. And the fact that some brokerage companies control the spread does not change anything in the market theory.
Fantasists, from talking about the stop-loss came to talk about the spread. )
It's not clear, if you bought cheaper you have to sell more expensive, but not cheaper than what you bought. A buy stop is your bid to sell cheaper than the buy price.
SZS: Mother bought gold in sberbank, I say, what if now like a kick down and she, well, let them anyway sell only when the selling price is above the buying price (the iron logic and persuade her no way, no indicators and trading strategies) )))) and has already been in the black for 3 months ))))
Another stereotype.
THE SPREAD IS NOT CHARGED. There is no spread at all, neither at opening nor at closing. The spread is not a fee. It is the natural difference between the best bid and ask at a given moment and the best ask.
The commission is charged, not the spread. And the fact that some brokerage companies compensate their costs from the spread "for convenience" does not change anything.
The spread is set by the market, not the brokerage. The fact that some brokerage companies control the spread does not change anything in the market theory.
In principle, this is correct. The commission is charged directly and the spread is probabilistic. Although the result is roughly the same.
If you want to withdraw money immediately after you open a trade, you will have to close the trade and it will be a minus. If you want to withdraw the money immediately after opening a trade, you will have to close it and the spread will be minus. With the next tick it is game on :) You may win back your loss, or you may increase it.
The spread is a loss at the time of opening a trade. If you want to withdraw money after opening a trade, you will have to close it and the spread will be minus. With the next tick it is game on :)
Of course. But the spread is winning when you play with the market, not when you fight with greedy DTs as it is considered here.
Sure. It's just that it's the market that wins the spread, not the "greedy DTs", as is commonly believed here.
...ZS: My mother bought gold in Sberbank, I say, and if now like a kick down and she, well, let them anyway sell only when the selling price will be higher than the buying price (iron logic and can not change her mind no how, no indicators and trading strategies) )))) and has already been on the plus side for 3 months ))))
I do not know how or where he invested, but now he does not say hello...
....a spread is a loss exactly at the moment of opening a trade....
loss, but maybe not all of it...
You open - spread is 1p, then you request to close - spread is 10p. We have nowhere to go, so we pay 10 pips on exit.
In general, this floating spread is such a thing, it is useless to wait for the moment of its minimum value, when you exit it may always be the maximum...
i'm not implying anything, but the recent trend is for brokers to switch to floating spreads.