Discussing the article: "Trader-friendly stop loss and take profit" - page 2

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Maxim Kuznetsov #:

first of all, it doesn't matter. The spread has already been taken into account in the initials.

Secondly and most importantly, you've gone into logarithms. That's the way it should be :-)

compare (a+1)/a and a/(a-1), that's exactly why

I don't get it.

 
fxsaber #:

I created EURUSD-symbol by Avg-ticks and the same USDEUR. I ran the author's script with these changes.


EURUSD.


USDEUR.

Author, there seems to be a mistake somewhere.

If you use logarithms, you should use double everywhere (arrays as well). The very use of logarithms is tantamount to using high/open and open/low divisions instead of differences.

 
Aleksej Poljakov #:

The very use of logarithms is equivalent to using high/open and open/low divisions instead of differences.

Exactly. It's the relative change that matters.


I looked at the comparison source and didn't understand why a module is used there.

//+------------------------------------------------------------------+
//|Разница между up и dn                                             |
//+------------------------------------------------------------------+
void Difference(double &array[],int &up[][2],int &dn[][2])
  {
//---
   int sup=ArrayRange(up,0),sdn=ArrayRange(dn,0);
   if(sup>=sdn)
     {
      ArrayResize(array,sup);
      for(int i=0; i<sup; i++)
         array[i]=i<sdn? MathAbs(up[i][1]-dn[i][1]):up[i][1];
     }
   else
     {
      ArrayResize(array,sdn);
      for(int i=0; i<sdn; i++)
         array[i]=i<sup? MathAbs(dn[i][1]-up[i][1]):dn[i][1];
     }
//---
  }
That's why I removed the module in the original and made only these changes. 
CalcArray(lvl_up,(int)MathRound((max / open - 1) * 1 e5));
CalcArray(lvl_dn,(int)MathRound((1 - min / open) * 1 e5));

EURUSD.

EURUSD


USDEUR.

USDEUR

It's starting to look like a theory.

 
fxsaber #:

Exactly. What matters is the relative change.


I looked at the comparison source and didn't understand why a module was used there.

That's why I removed the module in the original and made only such changes.

EURUSD.



USDEUR.

It's starting to look like a theory.

The module was used only to show that there is a difference. And whether it is positive or negative is of no importance). The main conclusion from this difference is that stop-losses and take-profits for buy and sell will be different.

 

Любая позиция закроется либо по тейк-профиту, либо по стоп-лоссу. Других вариантов нет. Значит, полная вероятность для этих двух событий должна быть равна 1. Вероятность того, что позиция закроется по тейк-профиту складывается из двух составляющих: вероятности того, что цена достигнет уровня тейк-профита и вероятности того, что цена не достигнет уровня стоп-лосса. Аналогичным образом мы рассуждаем и о закрытии позиции по стоп-лоссу. Тогда, формула математического ожидания будет выглядеть так:

This is a wonderful reasoning. But then it is considered that the probabilities SL and TP are exactly those values that were calculated on the graphs according to the original method. And in it, the SL and TP probabilities were calculated independently.

For example, if the TP probability was calculated, it automatically means that the SL probability was calculated. But in reality it is not so. Other values are used.

 
fxsaber #:

This is a wonderful reasoning. But then it is considered that the probabilities SL and TP are exactly those values that were calculated on the graphs according to the original method. And in it the probabilities SL and TP were calculated independently.

For example, if the TP probability was calculated, it automatically means that the SL probability was calculated. But in reality it is not so. Other values are used.

Take two dice. We consider it a win if one die rolls a 3 and the other rolls a 5. What is the probability of winning? Now let's paint the cubes in different colours. We will consider it a win if the red cube falls 4 or more, and the blue cube falls less than 5. What is the probability of winning in this case?

 
Aleksej Poljakov #:

We take two dice. We consider it a win if one die rolls a 3 and the other rolls a 5. What is the probability of winning? Now let's paint the cubes in different colours. We will consider it a win if the red cube falls 4 or more, and the blue cube falls less than 5. What is the probability of winning in this case?

Why do we need third-party associations when we can use this example.

Let's consider only BUY positions. Let's assume that the price always manages to move down by -200 pips before reaching TP. Then with SL = 200, the probability of takeout is zero.

 
"Any position will close at either take profit or stop loss." The position may not close at all. In a flat market, the price will not reach either TP or SL.
 
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Check out the new article: Trader-friendly stop loss and take profit.

Author: Aleksej Poljakov

Hello will be you see more good side help me for balance when you can,thanks.
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