Brain limitations: position sizing for forex
This is tough, I think because the "size" has to be different if you want to convert 100% of the amount back to your base currency.
So say my base currency is USD and I am trading USD/GBP (I know this isn't a real pair). If I convert $100 to £75, the order could look like this:
The sizer is called once, and lets say the idea is to always trade a size of $100, so we configured
Now say the profit limit is hit, that means we will convert £100 into $133. But we only had £75 which means we will be taking some sort of a position instead of closing it out.
I'm trying to figure out how we would size this properly, but it seems to be a limitation in my brain.
Imho you approach the problem from the wrong side. You convert the price, but you want to convert the
Sizer(a custom one) will then say that the maximum size is
The position will be closed with the right
sizebecause the take-profit and stop-loss sizes are the same as that from the main order.
@backtrader oh that's very interesting and makes perfect sense, thank you!
@backtrader Actually, I'm unable to see how to apply this.
If we have
But the actual price is $.75, the order will go to the broker at $100... I'm very confused. Maybe the right thing to do is to manually create the bracket orders.
See this other thread: Community - Backtesting oanda/forex