DanL
Mar 13th, 2001, 07:03 PM
Hi all,
Ok, here is my problem... It is based on leverage trading with foreign exchange. (But understanding this is not important) I have a system, and i would like to tweak it. First I will explain the system, then the question.
Note: 1 point is 0.01 cents.
I buy US dollars with Australian dollars at say 55 cents. (Backing the Aus dollar to go up). If the Aus dollar goes up 35 points, I sell... if it goes down 50 points, I buy again. If from here it goes up 35 points, I sell that one and wait. If it goes down again, i buy again, If it goes up such that my first purchase it making a 35 point profit, i sell it. If it just kept going down, i would buy every 50 points.
Two things you need to know... every time you buy or sell, it cost $65, and for each point, i make $10.
Obviously, you would like to trade as often as possible (If you waited until you made 300 points profit, you would make only one trade a year, so not make much profit), however, you must take into account the $65 each way charge for brokerage.
Using the following as vaiables, I would like a formula to tell me exactly how many points profit i should take before selling.
Variables:
Amount going down before buying (don't think this matteres)
Profit Per Point
Brokerage (Each Way)
Cheers.
Ok, here is my problem... It is based on leverage trading with foreign exchange. (But understanding this is not important) I have a system, and i would like to tweak it. First I will explain the system, then the question.
Note: 1 point is 0.01 cents.
I buy US dollars with Australian dollars at say 55 cents. (Backing the Aus dollar to go up). If the Aus dollar goes up 35 points, I sell... if it goes down 50 points, I buy again. If from here it goes up 35 points, I sell that one and wait. If it goes down again, i buy again, If it goes up such that my first purchase it making a 35 point profit, i sell it. If it just kept going down, i would buy every 50 points.
Two things you need to know... every time you buy or sell, it cost $65, and for each point, i make $10.
Obviously, you would like to trade as often as possible (If you waited until you made 300 points profit, you would make only one trade a year, so not make much profit), however, you must take into account the $65 each way charge for brokerage.
Using the following as vaiables, I would like a formula to tell me exactly how many points profit i should take before selling.
Variables:
Amount going down before buying (don't think this matteres)
Profit Per Point
Brokerage (Each Way)
Cheers.