ES Journal Archive (2009 - 2010)

Discussion in 'Journals' started by Jahajee, Jan 1, 2009.

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  1. Picaso

    Picaso

    Big kudos to your patience, Ammo. What's your average now (if you don't mind saying).
     
    #43251     Nov 8, 2010
  2. ammo

    ammo

    reduce 16, short avg 11
     
    #43252     Nov 8, 2010
  3. Picaso

    Picaso

    Thanks, are you doing LIFO?
     
    #43253     Nov 8, 2010
  4. ammo

    ammo

    whats lifo
     
    #43254     Nov 8, 2010
  5. Decel

    Decel

    Last-In First-Out
     
    #43255     Nov 8, 2010
  6. ammo

    ammo

    still dont get it, example
     
    #43256     Nov 8, 2010
  7. Picaso

    Picaso

    Sorry: Last-In First-Out (as opposed to FIFO, First-In First-Out)

    Or are you keeping the average price constant for the whole trade?... I'm asking because when you last added at 19, average was 11 and now after reducing at 18.50 and 16 it still is 11.

    Just trying to understand how you count p/l while in a trade. Sorry to bother you mid-trade and good luck/skill with the rest of your position.

    Example:

    FIFO:

    - You short 1 unit at 20, it goes down to 14 and you add another unit; avg price 17.

    - At 10 you take out one unit (your First) with +10, with one unit left at "average" price 14.

    - It goes back up and at 12 you take out that unit at +2.

    = Total = 10 + 2 = 12 points.

    LIFO:

    - You short 1 unit at 20, it goes down to 14 and you add another unit; avg price 17 (same as before).

    - At 10 you take out one unit (this time your Last) with +4, with one unit left at "average" price 20.

    - It goes back up and at 12 you take out that unit at +8.

    = Total = 4 + 8 = 12 points.

    End result is the same, but "average" price ("average" would make more sense with an example with >2 units, just trying to simplify) and open/closed profit during the trade change.
     
    #43257     Nov 8, 2010
  8. ammo

    ammo

    if i sold 10 15 and 20 ,avg 15 if they were same size,keep same avg til another add,doesnt change on reduction,so if avg 11,reduced 18 and 16, 7 and 5 point losses
     
    #43258     Nov 8, 2010
  9. ammo

    ammo

    avg 11 , add 19 , avg 15
     
    #43259     Nov 8, 2010
  10. Picaso

    Picaso

    OK, I get it now, much appreciated.
     
    #43260     Nov 8, 2010
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