Profit Calculation is the most important element of every trading system. This is where we can set up the measurement of where is the point we would like to close the trade with happy ending.

The most common profit taking is by pips or points. But in RdzGridTraps, profit, stop loss is always measured by the currency. For example if you specify 40 in Target Profit, it means you would take a profit at USD 40 if the account currency is in USD. It applies the same for others like EUR, AUD, or GBP.

The Profit Calculation itself contains 2 modes:
  • Include Commission and Swap - the profit will be calculated first with any commissions and swaps for each order.
  • Exclude Commission and Swap - the profit is just a plain profit without any commissions and swaps.
In real world, Commissions normally applies for ECN account, while Swap is the amount deducted from order profit when you have floating positions during weekends. In common sharia / islamic account, swap is not applied but spreads typically will be wider than the standard account

The Profit Calculation can be calculated with 2 types:

Fixed
If you select Fixed in Target Type, then the take profit number will be fetched from Target Profit directly. No validation is applied, so basically you can set to any number as long as it is positive number.

Dynamic
If you select Dynamic in Target Type, then the take profit number will be calculated using the formula below.

Profit = base x multiplier

base is from Target Profit Calculation Source. If the value is Balance, then base is equal to balance of your account. If base is Equity, then base is equal to account equity.
While multiplier is from Target Profit Multiplier.

Example:
You have balance of $5000 and equity $4900 considering that you still have floating orders. You have set the Target Profit Multiplier to 0.005. Your Target Profit Multiplier is set to 0.01.

Scenario 1
You set the Target Type to Dynamic and set the Target Profit Calculation Source to Balance. Your target profit now is $5000 x 0.01 = $50.
Scenario 2
You set the Target Type to Dynamic and set the Target Profit Calculation Source to Equity. Your target profit now is $4900 x 0.01 = $49.


Last edited Oct 27, 2015 at 3:49 PM by radityoardi, version 2