Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Am I the only one who noticed this bug on NT 7.0.1?
I think there's a bug in the way NT determines average price when using LIFO method. If I hold multiple positions and the last one becomes profitable I sell it and my average price improves. But the logic does not take in to consideration that the position I just exited for a profit is no longer a part of my multiple positions.
So when I bought this position to scale in to my trade my average price improved but when I closed this position for a small profit my overall average price of my open positions improved even further according to NT. This is incorrect because that closed position is not part of my overall position anymore. So the average price should have been decreased to what it was before I scaled in to my overall position and then the small profit of that position should be factored into the overall average price to figure out what the new average price is now.
Is this confusing yet?
So if I am holding several positions and exit my last entree at a profit then Average Position Price (APP) needs to go back to what it was before that position was added to all my other open positions. After that the profit that was made from that exit needs to be added to the remaining open positions to calculate the APP.
2 questions:
1) Do you add money to wining or losing positions?
2) When you say "my average trade improves", you mean it is it goes up or down?
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Please note that I am not outlining a particular strategy. I simply want to bring attention to how Avg. Price is calculated when using LIFO method for position entrees. NT algorithm is incorrect in this situation.
But to answer your question:
1. Positions are added when a buy signal is reached.
2. I meant that the Unrealized PnL is being averaged in incorrectly.
I played around with some LIFO with either add $ to losing and wining positions, various exits, etc
So I have an idea how it should be.
If you give us a few examples how it is calculated and how you think it should would be helpful to assess if the calculations are wrong. Without that we can know whether it is right or wrong.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Say I'm going Long. If I am holding 10 positions and then I exit my last entree at a profit the Unrealized PnL needs to decrease back to what it was when I had 9 positions. Then the profit that was made from that last exit needs to be added to the remaining open positions to calculate the new Unrealized PnL. Currently NT does not do this.
I understand. If you are convinced it is wrong, ok.
But if you show your specific entries and point out the specific averages it shows, we all could be more helpful.
G'nite.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
This bug can easily be duplicated by using chart trader on replay mode. Just pick a time frame that you are familiar with and make a few entrees then exit the last one with a limit order. You will see that the Avg. Position price stays the same.
