Topic: adding to a winner

Hi Popov,

I noticed something interesting and think that its very important in backtesting. Although I choose adding to a winning position I saw that FSB adds to a position if total positions are winning. I want to say that even if the last added position is not a winner FSB keeps on adding to the position and this leads to over leveraging. For your information I took a snapshot of the situation. In the picture you see 1st arrow is short position and its a winner but FSB adds the 2nd position nearly at the same price and worse than that it adds the 4th position even the 3rd position is a loser. I think it calculates the winning percentage of the total open positions but its not like that in real life. I hope I could explained the problem a little. Is there a solution to stop this wrong adding but keep on adding to winners?

Peace and regards...

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Re: adding to a winner

I think it calculates the winning percentage of the total open positions but its not like that in real life.

The real life depends on the view point. For me the position is only one. There is not such thing as opening of multiple positions for the same symbol. What MT does now is a huge issue according to me. MT forces me to open a new position instead adding to the currently opened one. That costs transaction time and lowers the reliability of my systems.

I'm trading with a broker, which has adding and I never use MT. The only reason I'm writing FST - MT connection is because of you. I also donate this project with my personal free time and capital and I want to make it according my best principles.

I hope I'm not like a donkey and I'll change my mind if I see I'm not write. If you can prove that the calculation of the aggregated position profit is any different than calculation of the profit of the separated position I'll buy a beer to you.

As I see you think that because we open multiple positions in MT the Winner mode has to allow adding when all of them are at profit. According to me this must be some other mode that determines whether all entries are contributed positively. That will be compatible with the systems which are only able to add to a position (as will be in MT5).

Re: adding to a winner

Popov wrote:

The real life depends on the view point. For me the position is only one. There is not such thing as opening of multiple positions for the same symbol. What MT does now is a huge issue according to me. MT forces me to open a new position instead adding to the currently opened one. That costs transaction time and lowers the reliability of my systems.

I'm trading with a broker, which has adding and I never use MT. The only reason I'm writing FST - MT connection is because of you. I also donate this project with my personal free time and capital and I want to make it according my best principles.

Popov, firstly I must mention that I highly appreciate the work you are doing here and if one day you decide to charge for this program I wouldnt get amazed. Its up to you and you should do the thing which is better for you both emotinally and financially.

Popov wrote:

I hope I'm not like a donkey and I'll change my mind if I see I'm not write. If you can prove that the calculation of the aggregated position profit is any different than calculation of the profit of the separated position I'll buy a beer to you.

Heyy I would be glad if you bought be some drink but I didnt understand what is the subject really.

Popov wrote:

As I see you think that because we open multiple positions in MT the Winner mode has to allow adding when all of them are at profit. According to me this must be some other mode that determines whether all entries are contributed positively. That will be compatible with the systems which are only able to add to a position (as will be in MT5).

The next point is I think you mention metatrader with MT. If so me either dont use MT. I cant code indicators and backtest in MT is very different for me to test strategies. I was just testing a strategy on FSB and didn't want my system to add  a position if there is an open position which is not winner yet. For example;
I am long at 1.4400
after added at 1.4500
and added again at 1.4600
but when price comes back to 1.4500 I wouldnt add it if my previous positions are still open.
I just wanted to mention that point.

I think I couldnt explained my problem explicitly in the first post. I just wanted to ask while backtesting; if I can stop adding to position if one of the positions are loser at that moment. If there isn't anything to stop this process, its ok too, life continues anyway..

Peace..

Re: adding to a winner

I am long at 1.4400
after added at 1.4500
and added again at 1.4600
but when price comes back to 1.4500 I wouldnt add it if my previous positions are still open.

If you open at 1.44 and add twice equal amount after that , let's say 1 lot. You'll receive one position of 3 lots at 1.45. Even if you open three positions, your account will be the same as you have opened 3 lots at 1.45.

I understand now you want to add only, if the price is moving in the position's direction and makes new extreme. This cannot be tested easily with FSB since it doesn't keep record for the previous operations. It calculates the averaged price as a result of all the trades after the initial opening.

Probably a custom indicator can be written to cover that case. It must check for the previous events and to rise repeated signal for every new case in the desired direction. Unfortunately this indicator will cover only a specific entry condition.

Re: adding to a winner

Okk I see now. Maybe with break/even indicator it gets better.

Re: adding to a winner

The BreakEven for FST is ready. I'll publish it tomorrow.

Re: adding to a winner

I want to buy you a drink smile