Please advice me how to calculate average TP for Grid.

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I want to make a total TP for same direction Grid order.

For example, current trend is BUY and I want to place BUY Grid1, 2, 3, 4, ......

They should be closed altogether when BUY Trend change to SELL Trend.

I expect BUY order close price is below orange line.

What will be calculation formula in this case ?

I

 
Hong Ling Mu:

I want to make a total TP for same direction Grid order.

For example, current trend is BUY and I want to place BUY Grid1, 2, 3, 4, ......

They should be closed altogether when BUY Trend change to SELL Trend.

I expect BUY order close price is below orange line.

What will be calculation formula in this case ?

I

  A = buy 0.01 @ 1.01

  B = buy 0.02 @ 1.02

  C = buy 0.03 @ 1.03

  D = buy 0.04 @ 1.04

  

  When we say A.price we mean the open price of order A  

  close point TP has a certain distance from all orders so

  

  TP_A=TP.price-A.price

  TP_B=TP.price-B.price

  TP_C=TP.price-C.price

  TP_D=TP.price-D.price

  

  then A.tvl = the tick value for the lot (so $ per point of order A and so on)  

  so

  TP.$=A.tvl*TP_A+B.tvl*TP_B+C.tvl*TP_C+D.tvl*TP_D;

  TP.$=A.tvl*(TP.price-A.price)+B.tvl*(TP.price-B.price)+C.tvl*(TP.price-C.price)+D.tvl*(TP.price-D.price);

  TP.$=A.tvl*TP.price-A.tvl*A.price+B.tvl*TP.price-B.tv*B.price+C.tvl*TP.price-C.tvl*C.price+D.tvl*TP.price-D.tvl*D.price;

  A.tvl*TP.price+B.tvl*TP.price+C.tvl*TP.price+D.tvl*TP.price=TP.$+A.tvl*A.price+B.tvl*B.price+C.tvl*C.price+D.tvl*D.price;

  

  but all these lots are for the same asset so we can say if we had a value per point per one lot 

  TVOL 

  then A.tvl= A.lot*TVOL and so on

  so 

  

  TVOL*TP.price*(A.lot+B.lot+C.lot+D.lot)=TP.$+TVOL*(A.lot*A.price+B.lot*B.price+C.lot*C.price+D.lot*D.price);

  

  TP.price=(TP.$+TVOL*(A.lot*A.price+B.lot*B.price+C.lot*C.price+D.lot*D.price))/(TVOL*(A.lot+B.lot+C.lot+D.lot));

  

  so in theory your desired profit TP.$ price is found by the above equation

 For TP.$=$0 and TVOL 1$ (break even)

  

  TP.price=(0+(0.01*1.01+0.02*1.02+0.03*1.03+0.04*1.04))/(0.01+0.02+0.03+0.04);

  

  TP.price=(0.0101+0.0204+0.0309+0.0416)/(0.1);

  TP.price=(1.03)

 
Here is the maths for calculating net values for a batch of positions:

 
Hong Ling Mu:

I want to make a total TP for same direction Grid order.

For example, current trend is BUY and I want to place BUY Grid1, 2, 3, 4, ......

They should be closed altogether when BUY Trend change to SELL Trend.

I expect BUY order close price is below orange line.

What will be calculation formula in this case ?

I

Hey if I could suggest you take the price range that you are most likely to expect, flip your orders to be larger when you start, decreasing size as you get further into profit… this will do a few favours for you, 1. You will be gaining a larger amount of profit from your earliest and longest running trades, and risking less at the point you need to close out upon reversal. 2. You will have a closer stop loss to the original entry point which can provide you a quicker way out of a false signal if price goes against you, but also will coerce you to be more selective with your entry points. 

As for your averaging…
Let’s assume you have a leverage of 1:200 

With your expected range, say 200 pips for ease to demonstrate, use this formula based on your example of 4 positions to open 

Find your range
(Highest price - lowest price) / (Positions Total)
This gives the distance between each entry.

Entry level 1 (lowest price+Distance)
Entry levels 2, 3, 4… (Previous price+Distance)

Here I would note, calculate your entry points following the direction of the intended trade. 
Add from lowest for buys, 
subtract from the highest for sells.

For your sizing… 

Determine your exposure per smallest lot size
This will tell you reasonable sizing for trades

Total Lots to trade = 
(Account Balance) / (margin required (0.01)


For position #1 

Size = (Balance/(Margin x total positions) 
0.04 entered 

For position #2 

Size = (Equity/(Margin x (total-1))  $17.50
0.07 entered - 50pips gained

For Position #3 

Size = (Equity/(Margin x(previous total-1)$22.50
0.09 entered - 100pips gained 

For Position #4 

Size = Equity/(Margin x(previous total-1) $25
0.1 entered - 150 pips gained 

Let’s assume a 30pip retracement calls a reversal close out, you stand to gain 
120pips on your 0.04, 
70pips on your 0.03, 
20pips on 0.02, and only sacrificing a fraction to
-30pips on 0.01 


Hope this makes sense, I am tired as right now but will gladly help more when I can if needed 






 
Lorentzos Roussos #:

  A = buy 0.01 @ 1.01

  B = buy 0.02 @ 1.02

  C = buy 0.03 @ 1.03

  D = buy 0.04 @ 1.04

  

  When we say A.price we mean the open price of order A  

  close point TP has a certain distance from all orders so

  

  TP_A=TP.price-A.price

  TP_B=TP.price-B.price

  TP_C=TP.price-C.price

  TP_D=TP.price-D.price

  

  then A.tvl = the tick value for the lot (so $ per point of order A and so on)  

  so

  TP.$=A.tvl*TP_A+B.tvl*TP_B+C.tvl*TP_C+D.tvl*TP_D;

  TP.$=A.tvl*(TP.price-A.price)+B.tvl*(TP.price-B.price)+C.tvl*(TP.price-C.price)+D.tvl*(TP.price-D.price);

  TP.$=A.tvl*TP.price-A.tvl*A.price+B.tvl*TP.price-B.tv*B.price+C.tvl*TP.price-C.tvl*C.price+D.tvl*TP.price-D.tvl*D.price;

  A.tvl*TP.price+B.tvl*TP.price+C.tvl*TP.price+D.tvl*TP.price=TP.$+A.tvl*A.price+B.tvl*B.price+C.tvl*C.price+D.tvl*D.price;

  

  but all these lots are for the same asset so we can say if we had a value per point per one lot 

  TVOL 

  then A.tvl= A.lot*TVOL and so on

  so 

  

  TVOL*TP.price*(A.lot+B.lot+C.lot+D.lot)=TP.$+TVOL*(A.lot*A.price+B.lot*B.price+C.lot*C.price+D.lot*D.price);

  

  TP.price=(TP.$+TVOL*(A.lot*A.price+B.lot*B.price+C.lot*C.price+D.lot*D.price))/(TVOL*(A.lot+B.lot+C.lot+D.lot));

  

  so in theory your desired profit TP.$ price is found by the above equation

 For TP.$=$0 and TVOL 1$ (break even)

  

  TP.price=(0+(0.01*1.01+0.02*1.02+0.03*1.03+0.04*1.04))/(0.01+0.02+0.03+0.04);

  

  TP.price=(0.0101+0.0204+0.0309+0.0416)/(0.1);

  TP.price=(1.03)

Hello, thank you for your info.

But based on this formula, I see total profit is zero, can you see below figure ?


Files:
08542.jpg  25 kb
 
Hong Ling Mu #: Hello, thank you for your info. But based on this formula, I see total profit is zero, can you see below figure ?


Yes, according to the maths I provided, the Net Opening Price for your batch is 1.03, which is the Break-Even level of zero profit/loss.

To make a profit, your Take-profit level will then have to be set above the 1.03 price level.

 
Fernando Carreiro #:
Here is the maths for calculating net values for a batch of positions:

I have to ask , Ms Word can format like this ? 

 
Hong Ling Mu #:

Hello, thank you for your info.

But based on this formula, I see total profit is zero, can you see below figure ?


Yes , i got the same result when i asked the formula which price will give me 0$ (1.03)

You have an issue in trailing the scale in ? There might be things to consider given price increases linearly but your p+l behavior changes with every new order 

As Darren said with this scaling your BE will move closer to the edge (if i'm not mistaken)

(and also mq , it would be helpful if i could scroll on the list that pops up when i type @ , and . doesn't work on the tags , and also inform the user someone tagged him)

 
@Lorentzos Roussos #:I have to ask , Ms Word can format like this ? 

Yes, you can also do that in Microsoft Word (with the equation editor), but what I provided was actually from PTC Mathcad (software for engineering calculations).

 
Fernando Carreiro #:

Yes, you can also do that in Microsoft Word (with the equation editor), but what I provided was actually from PTC Mathcad (software for engineering calculations).

Thanks i'll look into it . It presents nicely

 
Fernando Carreiro #:

Yes, according to the maths I provided, the Net Opening Price for your batch is 1.03, which is the Break-Even level of zero profit/loss.

To make a profit, your Take-profit level will then have to be set above the 1.03 price level.

I see.,,,,,


So to get profit, just add xxx TP (pips) value in there?

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