ET News & Sponsor Info
General Topics
Markets
Technical Topics
Brokerage Firms
Company Specific
Tools of the Trade
Trading for a Living
Community Lounge
Site Support

# Trading System with 2 contracts.....

Discussion in 'Strategy Building' started by Shax, Dec 2, 2020.

1. ### Shax

Hi,

I read in a book and also in an issue of Futures Truth magazine, that using 2 contracts instead of just one, the Equity Line can improve by becoming more regular;

therefore, I wanted to ask if someone can help me to insert in this Trading System 2 contracts, but the first contract will close in profit after 100 points (or + 0.45 % from the entry price),
while the second contract will follow the T.S. rules.

I thank you in advance.

------------------------------------------------------

Inputs: Length(50), len2(4), len3(4), Amount(1700);

vars:
daysintrade(0),atr(0),ptargmult(1),longliqpt(0), shortliqpt(9999999), protlongstop(0), protshortstop(0), lowestlow3(0),highesthigh3(0),bed
(0),sed(0),stb(0), sts(0);

atr=avgtruerange(Length);
lowestlow3=lowest(low,len2);
highesthigh3=highest(high,len3);
bed=0;
sed=0;
if (close>=close[1]) then sed=1;
if (close<=close[1]) then bed=1;
if(bed=1) then
begin
stb=open of tomorrow +.5*(highesthigh3-lowestlow3);
sts=open of tomorrow -(highesthigh3-lowestlow3);
end;
if(sed=1) then
begin
stb=open of tomorrow +(highesthigh3-lowestlow3);
sts=open of tomorrow -.5*(highesthigh3-lowestlow3);
end;
if (marketposition=1 and barssinceentry=0) then
protlongstop=entryprice(0)-3*atr[1];
if (marketposition=-1 and barssinceentry=0) then
protshortstop=entryprice(0)+3*atr[1];
if (marketposition<>marketposition(1)) then
begin
ptargmult=1;
longliqpt=0;
shortliqpt=999999;
end;
if (marketposition=1 and high[1]>entryprice(0)+ (3*atr[1])) then
begin
longliqpt=entryprice(0);
end;
if (marketposition=-1 and low[1]<entryprice(0)- (3*atr[1])) then
begin
shortliqpt=entryprice(0);
end;
buy tomorrow at stb stop;
sellshort tomorrow at sts stop;

SetStopLoss(Amount);

-------------------------------------------------------------

MarkBrown likes this.
2. ### AbbotAle

Studies have shown the other way as well, selling 1/2 reduces overall profiability and maybe even overall risk.

With trading there's never one simple answer...

Amatrue likes this.
3. ### MarkBrown

in your code "market position" will only work one bar after you have a position it will not work from the time you are actually in a position. so what i am saying is there is a one bar delay in "market position" actually working.

to get around this you create a variable call it

var:mp(0);

then spell out the same conditions that trigger a trade

if so and so then mp = 1;
if so and so then mp=-1;

replace all your conditions using "market position" now with "mp".