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 Rocko Bonaparte   Registered: Jan 2009 Posts: 101 09-30-12 05:04 PM I've been trying to hand calculate some backtest results from Amibroker when doing a 100:1 margin spot forex test. This is the best I can come up with for some of the results. I have questions about most of it so I hoped some regulars can help me out. Let's say I'm looking at EURUSD. On the day I enter a long position, it is going at \$1.21800. So I need \$1.21800 dollars to get a euro. However, it trades in lots of 100 as its base. So I need \$121.80 dollars to get 100 euros. But the base currency is USD so I basically pay \$100.00 to get, like 82.10... euros. I want to enter \$100k into the long position, using 100:1 margin. Here's where I get confused . The Amibroker instructions are to enter a margin deposit of 1,000 for 100:1, but I would have figured 100. When I did my math with just 100, it didn't work, and I had to enter 1,000. So we'll continue with that and maybe change this story later if somebody comments otherwise. First, how many contracts can I do with that? with \$100,000 I assume \$100,000 divided by 1,000, which is 100 contracts. But due to some commissions at most I can reason is 99 contracts. Say EURUSD goes up a pip. So it's now \$1.21801. My profit would be: 99 * (1.21801 - 1.21800) * 100 * 1000 = \$99. Just raking it in there. (It's just for this situation. ) Note that none of this factors in the bid/ask spread. I may be asking about that next. Is all this right? Any idea why with the margin it's x1000 instead of x100? Right now my own math correlates to amibroker backtest results with these numbers, but only because of these numbers. Edit/Delete • Quote • Complain
 oldtime   Registered: Jun 2011 Posts: 7479 09-30-12 05:19 PM also, the accrued interest gets you a little, not sure where you are getting 100:1 unless you are non USA. Kind of a moot point, since what they will give you has nothing to do with how much you will accept unless you are just dreaming on a Sunday afternoon I was just thinking about the same thing Imagine I walked into the Trump Casino on the day it opened in Atlantic City, and not a single 7 got rolled for 24 hours How much could I have made? Edit/Delete • Quote • Complain
 oldtime   Registered: Jun 2011 Posts: 7479 09-30-12 05:40 PM otherwise, It depends on what your broker will give you. In USA it will be either 50 to one or 40 to one. My broker is 40 to one. so with 10k in my account (which is the minimum) in USD, I can put on 400k EUR, minus the spread, commission and interest Edit/Delete • Quote • Complain
 Random.Capital   Registered: Jan 2005 Posts: 3848 09-30-12 05:46 PM Quote from oldtime: ...what they will give you has nothing to do with how much you will accept That's a great line. Applies to so much of life. Edit/Delete • Quote • Complain
 oldtime   Registered: Jun 2011 Posts: 7479 09-30-12 06:12 PM Quote from Random.Capital: That's a great line. Applies to so much of life. hey random, how you been? Haven't heard from you in a while. piezoe turned me on to some George Soros lectures, that is my plan today, to bend my hard core right wing liberterian mind out of it's vice. When I was a kid they had a band called the "Mind Benders" I think their big hit was "Red Rubber Ball." It didn't matter who or what you actually were, you couldn't quite be offended by them. Even my mother said, "Ok, now that one I like." Edit/Delete • Quote • Complain
 Rocko Bonaparte   Registered: Jan 2009 Posts: 101 09-30-12 09:35 PM I had hoped using 100:1 would make the numbers a little bit rounder. Edit/Delete • Quote • Complain
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