NexusFi: Find Your Edge


Home Menu

 





How to trade these probabilities?


Discussion in Traders Hideout

Updated
    1. trending_up 2,324 views
    2. thumb_up 0 thanks given
    3. group 1 followers
    1. forum 1 posts
    2. attach_file 0 attachments




 
Search this Thread
  #1 (permalink)
 jonc 
australia
 
Experience: Beginner
Platform: NinjaTrader
Trading: -
Posts: 303 since Sep 2010
Thanks Given: 123
Thanks Received: 141

I'm trying to figure out if it is possible to be profitable to trade a particular probabilities scenario.

Here is the scenario -

Suppose every day in a 2 hours time frame the price of a instrument would range from -2 to 4 only ( 7 ticks range)

Here are the probabilities of each price getting hit during the 2 hours

4 - 40%
3 - 50%
2 - 60%
1 - 100%
0
-1 - 100%
-2 - 60%

Suppose

1. Each tick is worth $100
2. You have a $5000 account
3. Trade the next 100 days
4. You can enter only 1 lot for each trade
5. You have to minus $20 for commission for each trade
6. All positions would be closed at the end of 2 hours regardless of the price level at that point, you can have profit target and stop loss to exit earlier
7. The price always start at 0 at the beginning of the 2 hours

If the trade decision is that you must decide to take either a long or short position at price - 0 only at the beginning of the 2 hours, what is the most profitable way to trade these probabilities over the course of the 100 days?

A. Do you take a long or short position for each trade?
B. What would be your profit target and stop loss?

Suppose you are allow to enter a 2nd lot at any time and price during the 2 hours. Would this make a significant difference and how would you trade this 2nd lot?

Is there a simple way to calculate the most profitable way to trade these probabilities?

Thanks


Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Iran Lebanon Problem Kills Switzerland Talks, Brent at $ …
Prediction Markets & Event Contracts
Fed Hike Odds at 57% After Warsh: England Surges 12.9%, …
Prediction Markets & Event Contracts
Netherlands & Germany Surge as World Cup Field Narro …
Prediction Markets & Event Contracts
Daytrading to swingtrading
Traders Hideout
Trump Media to sell instant access to market-moving soci …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Want your NinjaTrader indicator created, free?
5 thanks
FootPrintV2 Chart for NT8
1 thanks
BERN ALGOS algo trading journal
1 thanks
Afternoon-close session
1 thanks
Franks Trading Journey
1 thanks




Last Updated on December 6, 2013


© 2026 NexusFi®, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Downloads - Top
no new posts