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Relative Ratio meaning for Profit Target and Stop Loss

Posted By neo 4 Years Ago
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neo
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Posted Saturday June 08 2013
What is the exact meaning of relative ratio for profit target and stop loss?

I've seen in the Help file, that says "a 3% profit target has been set". However, 3% of what? Account value? cash? value of the position opened?

Many thanks.
phg
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Posted Saturday June 08 2013
That can make sense only against individual positions. At the details level, I wonder how that works against partial fills?

-Pete

See also Yahoo group about applying RE.

Posted Sunday June 09 2013
Relative ratio means relative to the position entry price. A profit target of 0.05 means the price must increase (or decrease for short orders) by 5% for it to be hit.

For positions with multiple entry fills (either because there were partial fills or because another order was submitted later to increase the position size), the entry price used is the weighted average of the prices of all the entry fills.

Thanks,
Daniel


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