BUY+SELL Break Even Point
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Hello
How to calculate the break even point of bucket BUY + bucket SELL? -
Some more info would be appreciated.
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Hello brother.
For ex:
XAUUSD:
Buy @1850 0.01lot
Buy @1848 0.02lot
Buy @1845 0.03lot
Sell @1855 0.01lot
Sell @1858 0.02lot
Sell @1860 0.09lotI want to calculate the break even point the whole position(Buy+Sell)
I mean calculate the price that make the floating profit and loss equal 0$. -
That's a complex calculation. I remember someone asked something like that in the past. I'm afraid I do not know what the calculation is exactly. If you know it, I can help you to implement it.
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@Pheaktra-Capo
Considered weighted sum:
Buy weighed: 1850 x 0.01 + 1848 x 0.02 + 1845 x 0.03
Sell weighted: 1855 x0.01 + 1858 x 0.02 + 1860 x 0.09Buy volume: 0.01 + 0.02 + 0.03
Sell volume: 0.01 + 0.02 + 0.09Break even
= (Buy weighted - Sell weighted)/(Buy volume - Sell volume)In your case, 1871.67
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Wow really thank you for the formular. Have a nice day
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How do we write (Buy weighed: 1850 x 0.01 + 1848 x 0.02 + 1845 x 0.03
Sell weighted: 1855 x0.01 + 1858 x 0.02 + 1860 x 0.09) the formular in Custom MQL Block? or how we do this in any block? -
I just calculate it. Sell weighted is bigger than Buy weighted. So BEP should be at low price and your calculation is 1871.67 is way too high
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@Pheaktra-Capo
Really? Put it in another way:Buy average: 1846.83 0.06 lot
Sell average: 1859.25 0.12 lotLet x be the balance price, i.e.
0.06(x - 1846.83)=0.12(1859.25 - x)
(0.06-0.12)x = 0.06(1846.83)-0.12(1859.25)
x = 1871.67You really need such a higher price to get break even!
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Sell Volume is bigger than Buy Volume.
The range Sell price is 1855 to 1860
and the range Buy price is 1845 to 1850.
How can 1871 that is higher than the sell bucket can make a BEP?Since the highest Sell price is 1860, so the more price rise, the more drawdown will be made
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@Pheaktra-Capo
Intuition is intuition. Maybe you can re-check yours with reality. -
@Pheaktra-Capo
Yes, the issue is a bit more complicated than you think. Of course, where your BEP is not only depends on the price and the volume, but also on the relative value of the positions among each other. You bought your selling positions all over the buying positions!!!
Here's another tip that you probably already know. If your positions are very close together and the sell volume only slightly exceeds the buy volume, the result is even a negative value. You can use the following example to help. If you hold the same volume of long and short positions, you have a hedg (profit or loss is frozen and stays the same no matter how the price moves). If the buy volume is only slightly higher than the sell volume, you need a huge price increase to reach your BEP because the sell position is also getting bigger. If you use the formula, you also have to insert a block with the function for the hedg. This can look something like the picture.
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@Pheaktra-Capo said in BUY+SELL Break Even Point:
Sell Volume is bigger than Buy Volume.
The range Sell price is 1855 to 1860
and the range Buy price is 1845 to 1850.
How can 1871 that is higher than the sell bucket can make a BEP?Since the highest Sell price is 1860, so the more price rise, the more drawdown will be made
Let me make an example this way: when we are at the level of the first sell, the bucket of buys is very positive, this is because the buys trade starting at lower price of sells and as the price rises these buys increase more and more, in the meantime the sells you find along the way erode this gain up to zero profit /loss. Just below 1871 you will be positive, just above 1871 you will be negative.
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Good morning. Can you share me that block?
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@Pheaktra-Capo
You have to use your own variables and constants for this. And you have to write this block yourself to understand what it does. Believe me, a copy and paste would not work. -
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I want to know the formula inside this
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For the custom MQL block, i understand already
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RGoo
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Thank you very much brother for sharing
