Point Value and Margin Value correct settings in FX stratregy

[tamas]

Hi All,

how to set correctly that two values in order to calculate correct profit in FX strategy?

The content of this url is absolutely clear: http://www.ninjatrader-support.com/H...ngFXStrategies

But, if set 100.000 Point Value (standard lot) and 2.500 Margin Value (leverage: 40) then the profit result equal profit/100.000.

How to set these values to profit result equal profit and not profit/100.000? My problem is that for correct backtest according to help guide I should set Point Value: 1 and Margin Value: 0,025 (of course quantity = quantity x 100.000) but Margin Value in Instrument Manager can not be set, it only can be integer.

Thanks your help in advance

[NinjaTrader_JoshP]

Tamas,

I believe margin value has no bearing on forex.

[tamas]

I believe margin value has no bearing on forex.

Sorry Josh,

I do not understand, what do you mean exactly?

[NinjaTrader_JoshP]

Tamas,

I am of the impression that margin value does not influence the profit calculation on forex. Are you experiencing differently?

[tamas]

I am of the impression that margin value does not influence the profit calculation on forex. Are you experiencing differently?

I do not know if I experienced it differently or I use it not correctly. In NT so many things are different compare to what I have used before.

Let me example what I mean (in backtest):
1) EUR/USD currency pair
2) Account size: 150,000
3) Point Value: 100,000 (standard lot)
4) Margin Value: 2,500 (leverage: 40)
5) Entry price:1.5734
6) Exit price: 1.5762

Calculation (no commission):
Quantity = Account size / Margin Value = 60
Profit1 = (Exit price - Entry price) x (Quantity x Point Value) = 16,800 (USD)
or
The 1 pip move of 1 standard lot is 10 USD, then
Profit2 = 28 x 10 x Quantity = 16,800 (USD)

Calculation in NT (no commission):
Profit in Point: 0.1680
Profit in currency: 0.17 (i think because of the 2 digit round)
The difference is the multiplication amount of the Point Value.

Accourding to what I wrote in the first post I think (according to help) I should make the following settings:
Point value: 1
Margin Value: 0.025 (I can not set this)
and in this case the quantity calculated by NT should be 6,000,000 (60 x missing Point Value) and in this case the
Profit = (Exit price - Entry price) x 6,000,000 = 16,800 USD

This is the point where I stucked.
Thanks in advance,

[NinjaTrader_Bertrand]

Hi tamas, from my testing I think Josh is correct in saying the margin value has no relation to what you are trying to set - to get to a 10$ pip value in backtesting please choose to trade a full lot in quantity for your strategy (100000) and set the PointValue in the Instrument Manager back to 1.

[tamas]

Hi tamas, from my testing I think Josh is correct in saying the margin value has no relation to what you are trying to set - to get to a 10$ pip value in backtesting please choose to trade a full lot in quantity for your strategy (100000) and set the PointValue in the Instrument Manager back to 1.

Thanks yours quick replies!

I think we misunderstood each other

I will set Point Value 1, that is ok.
What do I have to set for Margin Value to get correct profit in currency?

[NinjaTrader_Bertrand]

Just leave margin at 0 - but change the order quantity to reflect the amount you want to backtest, 10.000 for a minilot and 100.000 for a full lot, the profit per pip should then be reflected properly in the currency.

[tamas]

Just leave margin at 0 - but change the order quantity to reflect the amount you want to backtest, 10.000 for a minilot and 100.000 for a full lot, the profit per pip should then be reflected properly in the currency.

I understood. The result of FX strategy backtest can not be seen in currency, but in point. That is right?

With your settings result in point 280, if it is multiplied by 60 then the result is 16.800.

A bit strange ... Ohhhh, but working.

Thank you guys

[NinjaTrader_Bertrand]

You are welcome - in the Strategy Analyzer you can change it to Currency, Point or Percent in the tool bar - http://www.ninjatrader-support.com/H...verview37.html

[tamas]

Experience for others

... in the Strategy Analyzer you can change it to Currency, Point or Percent in the tool bar - http://www.ninjatrader-support.com/H...verview37.html

Yes, your right.

Here is experience for others:

Tested. If set quantity 1 standard lot (100000) according to help, then profit or loss too small and because of 2 digit round and my strategy the result is 0.00 in profit column in the currency mode.

Base on my example and Bertrand settings: Quantity = 100,000 x 60 = 6,000,000 and everything seem to be correct.

My god, it took 2 days

[NinjaTrader_Bertrand]

You are welcome, great you got it running!