Optimal number of ticks

Trading Systems
1

Hello!

I need some math help:

In my research I evaluated the following data:

  1. the maximum possible ticks per trade
  2. the actual ticks I scored according to my rule book

Now I would like to calculate which number of ticks is the optimal. So when I reach this optimal tick value I simply exit the trade. So on average I achieve a higher profit than I could achieve with my rules.

Can someone help me how to calculate this?

Thanks!

greetings Matthias

2

This question has a lot of discretion in it. But, you might be able to determine once you’ve answered these questions yourself.

  1. What timeframe I am trading with?
  2. How long do I hold trades usually?

Different timeframe = different holding time. Different holding time = different volatility. You’ve might and might not encounter news releases depending on what timeframe you’re trading with.

So, you have to measure the average ticks movement according to your strategy. And set it as your rule of thumb.

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