Experiment - Buy Low, Sell High - Page 2
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Thread: Experiment - Buy Low, Sell High

  1. #11
    As I tweak the original AIM system to match the Forex trading, which entails leverage, I believe it might be possible that when the price keep going up by x%, then there'll be switch of place from long to short. This should be fine, provided that there would be

    1. Sufficient margin in the switch point
    2. Switch stage is some where close to historic resistance?

    Among those assumptions in AIM system is the prices is present in a range in a big scheme of things. This is most likely a safer premise for exchange rates. I need to think about it on the weekend.

    Randy

  2. #12
    That is Asia session. AUD/USD open at 0.99~1.01, slightly below the close last week.

    Bought 640 units of AUD/USD in 1.0104

    Total position: long AUD/USD 2019 units
    Account value: $233.3
    Unrealized P/L: $44.2 (217pip)

    Thought over the weekend concerning the question of standing size and how to generate AIM operate in leverage settings. I'll put down some first thought later.

  3. #13
    AUD/USD is in a range now. Now It's trading in 1.0174

    Sold 300 units at 1.0174

    Total position: 1719 extended AUD/USD
    Account value: $240
    Unrealized P/L: $41.6 (240pip)
    %P/L: 42 percent

  4. #14
    AUD/USD is getting stuck there...

    Bought 430 units at 1.0124

    Total units: 2149 units AUD/USD

    Account value: $238.2
    Unrealized P/L: $39.8 (185pip)

  5. #15
    Sold 250 units of AUD/USD in 1.0164

    Total position: 1899
    Account value: $246.33
    Unrealized P/L: $39.2 (206pip)

  6. #16
    I am at the airport awaiting my trip...

    AUD/USD is shing down to 1.0 or so.

    Bought 190 units of AUD/USD

    Total position: 2089 AUD/USD long
    Account worth: $224.8
    Unrealized P/L: $17 (81pip)

    I am awaiting AUD/USD's further movement (down) to check how this system can survive.

  7. #17
    I shut all AUD/USD position to rethink the algorithm. I shall re-open it once I finish the job.

    Account value at closing: $214.8
    First investment: $168
    P/L: 27%

  8. #18
    I re-think the setup last night and realize I need to make some further adjustments.

    1. I put 50% margin (1:50 leverage) to be utilized as the first investment. That is way to large. Since that means AUD/USD simply needs go down by 2% that there will be a margin call. So I shall adjust down the first margin used by incorporating a few more funds. I'll assume at AUD/USD in 0.90 will be next round number support. That is approximately 8%~10% from current price. Afterward the account should survive from running out of margin when the price drops straightly without any retracement to that amount. This means I can only place the first margin use not greater than 17 percent (approximately ) - for simple to calculate I will round it up to 20 percent.
    2. The way to calculate the sell/buy amount each day? The original AIM method basically determine the raw amount by assessing the current position value with original position worth newly added place worth. It was created for inventory market without using margin. So here is what I will do for buy/sell amount
    delta = current standing worth - portfolio control
    sell/buy level = 20% x delta x 50
    20 percent is the percent margin I shall use for each incremental margin (delta x 50%)
    Therefore becomes a simpler calculation daily: enter the price to the AIM spreadsheet, assess whether it suggest any buy/sell. Then x10 (20% x 50) to do the buy or sell around AUD/USD.

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