Forex inputs need clarification

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StefanoSF
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Forex inputs need clarification

Postby StefanoSF » 06 Nov 2012

Hi,

I need some Forex setting clarifications.

Question 1) "Fixed Shares Contracts" or "Dollars per Trade"

In Strategy Properties, when entering a fixed dollar amount is it entered in "Fixed Shares/Contracts" or "Dollars Per Trade". ( I use IB so I need to enter base currency $ value not lots)

I compared both results using Strategy Report. "Fixed Shares/Contacts" has the strategy executing the correct value amount of 100,000 however Profit % under "Trade Lists" returns seem incorrect. For example the first trade based on 100,000, returns a 70 pip profits = $700. However, the Profit % shows 0.53%. It should be 0.70% (no comm or slippage)

When I use " Dollars Per Trade"

Using "Dollars Per Trade", Profit $ and % match and show $530 and 0.53% however this is wrong too and should be $700 and 0.70%. Also Contacts size vary and show 75637 which makes no sense.

See attached.

Question 2) In Quite Manager, What is the big point value for USD/JPN.
Attachments
Fixed Shares -Contracts.PNG
Fixed Shares -Contracts.PNG (15.13 KiB) Viewed 506 times
Dollar Per Trade.PNG
Dollar Per Trade.PNG (16.57 KiB) Viewed 489 times

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Andrew MultiCharts
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Re: Forex inputs need clarification

Postby Andrew MultiCharts » 07 Nov 2012

Hello StefanoSF,

If there are no commissions set up, the formula is the following: Profit% = (Profit$*100)/(EntryPrice*Contracts*BigPointValue)

For this picture: Profit% = (700*100)/(1.3221*100000)= 0.52946070645185689433477044096513 ~ 0.53

And for the second picture: Profit% = (529.46*100)/(1.3221*75637)= 0,5294617064550799047225329207236 ~ 0.53

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StefanoSF
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Re: Forex inputs need clarification

Postby StefanoSF » 07 Nov 2012

Hi Andrew,

Thanks for the reply.

When using IB to trade forex, should I enter $ value in "Fixed Shares/Contracts" or "Dollars Per Trade". From the formula you show above it seems "Fixed Shares/Contracts" is the correct input field.

Also can you tell me the big point value for the USD/JPN. Is 0.76 correct?

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Re: Forex inputs need clarification

Postby Andrew MultiCharts » 07 Nov 2012

Add symbols through symbol lookup and settings should be fine. Big Point Value is 1.

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StefanoSF
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Re: Forex inputs need clarification

Postby StefanoSF » 08 Nov 2012

Ok, here is what I've learned. These are the setting for trading USD/JPY with IB as your broker:

QM settings:
Price Scale: 1/1000
Daily Limit:1 ( this is irrelevant)
Min Mov: 5
Big Point Value: 0.01 ( it should be 0.0126 but MC does not allow for more then two dec places)

Strategy Property Settings:
Comm: 2.50 ( this is min set by IB)
Fixed Shares/Contacts: 100,000 ( to trade 1 lot. IB does not recognize lots so you have to enter trade value)

Strategy Reports:
To view your PL in local currency, within Strategy Setting click the setting icon. Click Display tab, click Regional Currency radio button and enter your regional currency value. In case of USD/JPY and a US account you would enter 1. If EUR/USD you would enter 1.273 whatever the daily rate of the local currency to the base currency. This will convert your strats PL to local currency.

Vote for Big Point Value decimal expansion to allow for correct BPV inputs.
https://www.multicharts.com/pm/viewissue ... no=MC-1160

- Stefano

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Andrew MultiCharts
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Re: Forex inputs need clarification

Postby Andrew MultiCharts » 09 Nov 2012

StefanoSF wrote:Vote for Big Point Value decimal expansion to allow for correct BPV inputs.
https://www.multicharts.com/pm/viewissue ... no=MC-1160

The feature request is a duplication of an old one.


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