Noldo

EURUSD Short : Trade Series or One Shot ?

Short
Noldo Aggiornato   
FX:EURUSD   Euro / Dollaro
When we observe the movement in the EURUSD Forex pair;
Let's try by opening a short trade :

  • Current Leverage : 100x
  • Position Size : %3 - %3.5
  • Stop-Loss : 1.09425
  • Take Profit Level : 1.06692
Trade attivo:
Leverage has been changed to 33x.
Trade chiuso: obiettivo raggiunto:
We achieved a net gain : %1.53
Our new capital (%100) : 101.53
Commento:
A small mathematical error has been made here.
However, when we look at large percentage short position gains or in total, it can cause huge calculation errors.
Short position profit is calculated as follows:
Profit Percent = pp
Short Position Profit = ((100 / (100 - pp )) - 1 ) * 100
Short Position Profit = ((100/98.47) - 1 ) * 100
Short Position Profit = (0.0155) * 100 = 1.55 (percent)
Total Profit = (Lev * Short Position Profit * Position Size) / 100 =
= (33 * 1.55 * 3) / 100 = 1.5345
Our new capital = 100 + 1.5345 = 101.534
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