Calculation the Robots Profit/Loss

[yakovcohen45]

Dear Pascal/Bily,

I have a general question regarding calculation of the Robots Profit/Loss.
I prefer to do it trough real example.

I sold 100 IWM shares on Sep. 7 at entry price of 70.81 (Short order- according to Robot recommendation).

after 5 days (Sep. 12), I decided to sold an aditional of 100 IWM shares at entry price of 66.88 (again, according to the Robot recommendation).

After these two trades, the summery is shorting of 200 IWM shares in average price of 68.85.

I understand that you are going to calculate the IWM Robot Profit/Loss according the original trade only (in my example- 70.81) and not according to the average price (68.85).

This means that you are calculating the Robot Profit/Loss for each session according to the original trade only and not according to the all filled trades during this session (session means from the first trade till the close of the trade or the stop loss is hit).

Am I write ?. Please Clarify.

[Billy]

Dear Pascal/Bily,

I have a general question regarding calculation of the Robots Profit/Loss.
I prefer to do it trough real example.

I sold 100 IWM shares on Sep. 7 at entry price of 70.81 (Short order- according to Robot recommendation).

after 5 days (Sep. 12), I decided to sold an aditional of 100 IWM shares at entry price of 66.88 (again, according to the Robot recommendation).

After these two trades, the summery is shorting of 200 IWM shares in average price of 68.85.

I understand that you are going to calculate the IWM Robot Profit/Loss according the original trade only (in my example- 70.81) and not according to the average price (68.85).

This means that you are calculating the Robot Profit/Loss for each session according to the original trade only and not according to the all filled trades during this session (session means from the first trade till the close of the trade or the stop loss is hit).

Am I write ?. Please Clarify.

Yakov,

Yes, the official P&L robot track record is computed on the initial entry only since it is the way the robot should be traded. Secondary entries and average P&L are executed discretionarily and differently by various traders and the robot's official performance cannot be affected.
Billy

[yakovcohen45]

Yakov,

Yes, the official P&L robot track record is computed on the initial entry only since it is the way the robot should be traded. Secondary entries and average P&L are executed discretionarily and differently by various traders and the robot's official performance cannot be affected.
Billy

Dear Bily,

Thank you for the quick response.

Are you recommending to follow Robot initial entry only without sizing the position by secondry entries ?

Yakov.

[Pascal]

Dear Bily,

Thank you for the quick response.

Are you recommending to follow Robot initial entry only without sizing the position by secondry entries ?

Yakov.

Yakov,



Position sizing for secondary entries is very important for psychological reasons and I do it all the time.
If the first position is a losing position, then you would not stress as quickly as if you had a full losing position.
Taking a second position at a better entry price gives you a psychological flexibility... But also the satisfaction that you are on average winning compared to the Robot's position.

However, in terms of total return, it is better to be invested 100% at the first signal. This is what has been back-tested. But, please understand that the robot does not care about the traditional psychological issues that every trader faces at one point or another. It trades probabilities and there is a clear declining average position earnings from the initial triggering date.



Pascal