Hello
I never kept a position pass the cut off hour. Mainly to save the interest cost to carry on a trade overnight. I start to think that it me be profitable to kept it sometime even if it cost me some $.
Dummy question: How do I evaluate the cost to keep Eur.Usd overnight
Any input appreciated
Martin
How to calculate cost of keeping a position overnight
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Andrew MultiCharts
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Re: How to calculate cost of keeping a position overnight
Hello Martin,
Could you explain, what exactly you would like to calculate in MC? Do you mean that you want your strategy to take into account the sum of money charged by your broker for maintaining overnigh position?
Could you explain, what exactly you would like to calculate in MC? Do you mean that you want your strategy to take into account the sum of money charged by your broker for maintaining overnigh position?
Re: How to calculate cost of keeping a position overnight
Hello Andrew
I want to adjust my position size by including or not the rollover cost estimate. My size is calculating by the risk + my cost + slippage ( estimate) + fee (interest charged) to keep position for 1 day
All i'm looking for is a basic formula. No need to get the exact value
By knowing in advance, I could evaluate the pertinence of exit and or keeping the position .
Martin
I want to adjust my position size by including or not the rollover cost estimate. My size is calculating by the risk + my cost + slippage ( estimate) + fee (interest charged) to keep position for 1 day
All i'm looking for is a basic formula. No need to get the exact value
By knowing in advance, I could evaluate the pertinence of exit and or keeping the position .
Martin
-
Andrew MultiCharts
- Posts: 1587
- Joined: 11 Oct 2011
- Has thanked: 931 times
- Been thanked: 559 times
Re: How to calculate cost of keeping a position overnight
1. What is the "risk" in this partisular case?the risk + my cost + slippage ( estimate) + fee (interest charged) to keep position for 1 day
2. What cost do you mean? Cost for maintaining position overnight?
3. What is fee (interest charged)? Is it different from cost?
Re: How to calculate cost of keeping a position overnight
Hello Andrew
I think i have resolve my question
Here is my calculation:
Risk$: amount of $ per transactions. ( 50$)
Quantity of unit = $ risk / Pip at risk + slippage
$ risk = Amount per transaction - Transact fee ( 5$ per 100K) - cost to keep over night
I will use 5% as interest charge
Calculation to be:
$ risk / pip at risk + slippage = InitQuantity
InitQuantity * Entryprice + slippage (2 pip) = Amount borrowed to broker
Amount Borrow to broker * 5% / 360 = rollover$
New quantity = $ risk per transaction - Rollover$ - Transaction fee / Pip at risk + slippage
This is not exact, but I don't need to. Also, I understand that I may get paid interest depending on the pair traded and if the initial transaction is Long or Short. I just want to make sure that if I risk 50$ per transaction, I don't risk 60$ when I add all the other cost.
Martin
I think i have resolve my question
Here is my calculation:
Risk$: amount of $ per transactions. ( 50$)
Quantity of unit = $ risk / Pip at risk + slippage
$ risk = Amount per transaction - Transact fee ( 5$ per 100K) - cost to keep over night
I will use 5% as interest charge
Calculation to be:
$ risk / pip at risk + slippage = InitQuantity
InitQuantity * Entryprice + slippage (2 pip) = Amount borrowed to broker
Amount Borrow to broker * 5% / 360 = rollover$
New quantity = $ risk per transaction - Rollover$ - Transaction fee / Pip at risk + slippage
This is not exact, but I don't need to. Also, I understand that I may get paid interest depending on the pair traded and if the initial transaction is Long or Short. I just want to make sure that if I risk 50$ per transaction, I don't risk 60$ when I add all the other cost.
Martin