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.