Something very simplistic

Discussion in 'Journals' started by Quah, Sep 11, 2002.

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  1. That's besides the point. Your first few trades overlap, you exit the first two trades at near the same time. You can't count that as 6pts/contract total.
     
    #261     Sep 20, 2002
  2. Quah

    Quah

    Whatever, I'm not going to argue with you - the overlap is totally irrelevent. They are individual trades, entered individually, and not dependent on the other trades. They each made their own individual 3 points. Makes no difference if they overlapped or not. 2 contracts were involved in those first two trades, each contract made 3 points. That sounds like 3 points/contract to me.
     
    #262     Sep 20, 2002

  3. The overlap is COMPLETELY relevant.

    Here's an example: if market opened up at 900, traded flat until 10:30, then ran to 910 by 10:35, I could list the following trades:

    9:33 L 900 (+10)
    9:35 L 900 (+10)
    9:38 L 900 (+10)
    9:43 L 900 (+10)
    9:51 L 900 (+10)
    10:04 L 900 (+10)
    10:25 L900 (+10)

    70pts total -- NOT per contract. Your per contract would remain 10.

    Since your target and stop is just 3 points, the overlap is not this extreme, but your system can easily be showing 3 trades capturing the same 3pt move in the first 10 minutes. Just gotta be careful that you're not listing the same movement as separate per contract profit opportunities.
     
    #263     Sep 20, 2002
  4. Quah

    Quah

    One last time - using your own example. If you entered a trade at each one of those entry points, at the end you'd be holding a long position of 7 contracts total, all entered at 900. If you exited all of them at 910, each trade would have had a 10 point profit. If you were trading 1 contract, that will be a profit of 70 points per contract, or a total of 70 points profit.

    If you were trading 2 contracts per trade, you'd have a profit of 140 points, or 70 points per contract. If you were trading 5 contracts per trade, you'd have a profit of 350 points, or 70 points per contract.....
     
    #264     Sep 20, 2002
  5. Are these results you're posting backtesting results or actual trading results? I would assume that looking at your P/L statement at the end of the day you could tell that you weren't netting 11/contract.

    It's nice to try to keep things simple and all, but even if the system is simple, I don't think you can be lax on the analysis of that system or its results.
     
    #265     Sep 20, 2002
  6. I think the confusion here is in the line of results posted as:

    Gross 11 points - 220/contract

    It appears illiquid is interpreting this line to read 11 points/contract.

    I intepret it to be the result of the gross of 7 winners minus 3 losers for a total of 11 points. Not 11 points per contract.
     
    #266     Sep 20, 2002
  7. Quah

    Quah

    Are you thinking I'm saying 11 points/contract/trade?
     
    #267     Sep 20, 2002
  8. Quah

    Quah

    That is correct - but it is per contract. I.E. - If I was trading 5 contracts, that statement would still be true - but I would actually have $1100 gross profits.

    Size is not important in this system, so I don't see any reason to post anything other than results based on 1 lot trades.
     
    #268     Sep 20, 2002

  9. By your reasoning, if I'm long 10 contracts at the open, sell them for a 10 pt profit at 9:35, i can list each contract as gaining 10 pts and saying by net result PER CONTRACT = 100?

    The example I gave was a bit extreme, but if you're not exiting your trade before the next one is taken, you should post:

    9:33 L 900
    9:35 Add to long
    9:38 Add to long (Sold 3 for +3)

    etc
     
    #269     Sep 20, 2002
  10. Quah

    Quah

    No, that would not be by my reasoning at all. If you opened a single position of 10 contracts at the open and sold those 10 contracts at 9:35 for a 100 point gain, that would be a 10 point per contract trade.
     
    #270     Sep 20, 2002
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