Could someone please clarify for me howthe units of trade work. I intend to use autotrading for a brokers account with a starting balance of just over £5000 (approx $8000). What isthe trade sizewhich I can enter if I wish to stake in spread betting terms , say, 1/300th of the balance per pip. Thus if theforex ask rate is 1.5550 on opening a long trade at £17 per point and the closing bid rate is1.5560 I would gain 17 x10 =170 to add to asimilar balance of £5000. From the notes which appear on setup pages it appeared that it would be sensible to scale to the broker balance at 0.5% maximum per trade. Is my undertanding correct or would that generate only a miniscule trade .because it doesn’t refer to the balance but something else.
Philip:
I am not sure I fully understand your question, but let me try to simplify things a bit.
When you set up AutoTrading at C2, you will be prompted to choose a “scaling percentage.” The scaling percentage translates the trade size that is published by the trade system developer, in order to make it appropriate to your account.
So, the math is very simple. Let’s say that a trading system developer issues a trade signal on C2 that says:
"BUY 10 EUR/USD"
Now, on C2, forex units are minilots. So the trade signal above means “buy 10 x 10,000 Euros” … or, buy 100,000 Euros.
Let’s imagine you set your trade scaling preference to 50% when you set up AutoTrading. In that case, then your AutoTrade account will but 5 EUR/USD (or, 5 x 10,000 … or 50,000 Euros).
Before you start trading using a live brokerage account, go ahead and set up AutoTrading using a free C2 Simulated Brokerage account (available when you configure AutoTrade). You can fool around with trade scaling preferences, and see how the trades would look before you risk real money.
Matthew
Thank you,Matthew. In my present instance my broker account is around the same value as the balance in the C2 model - so your reply implies that if I want them to be on roughly the same scale, 100% will suit my objective for this initial tranche.I already have some good experience trading on the scale envisaged. Most important lesson learnt over the last year would be to resist temptation to scalp, and let trades have a reasonable life as dictated by the system being followed.
I have run some trades linked to my broker account, and understand that if I vary the number of lots traded in the model, trades in my broker account keep to the single set % figure in the autotrade parameters. But while the autotrade parameter setting page helpfully shows a table which isintended to show how ones own recent trading results would change subject to the parameter changing, in actual fact the results do not change ! Could someone check this and let me know if I have misread it
or something.
Thank you
I think someone has revised the ‘demo’ calculation, so perhaps my being puzzled at how the autotrade sizing calculation worked in my early trades using autotrade are water under the bridge. But to be sure , can Matthew or someone explain what % I need to set in autotrade so that trades match model account trades in unit terms i.e if buying 10 gbpusd for the model account which has a balance of ,say, $5300, while my autotrade balance is £5480, (gbp not usd).
Thank you.[LINKSYSTEM_74598175]
My answer I think is to set autotrade scaling at 150% i.e gbpusd rate per £ times 100. A trade of QTY 10 GBPUSD becomes the equivalent on the autotraded account of 150,000 .[LINKSYSTEM_74598175]
