Topic: calculate negative PNL (Read 97 times)

It will depend on which leverage you use. If an order is opened, for example, with a leverage of x10, then if the price decreases by 5%, you will have a negative PNL equal to 50%. So you need to place a limit buy order 5% below the price of the first open order.

calculation will be complex because it depends on the leverage that you're used I think you better off making your target price and set a limit future order.

or maybe you can use the TP/SL feature, set the TP/SL to percentage and in most of exchange it will show you at what price point your TP/SL will be triggered, don't set the TP/SL but get the information about the price mark and make another future contract limit order at that price mark.

What exchange are you using for starters?

Most of the exchanges have an inbuilt calculator that you can use to calculate and estimate different scenarios from liquidation prices, PnL etc. I believe the tool can help you achieve what you want .

You need to have some things ready to make the calculations
— Leverage (if any)
— Price of asset being traded.

If you have both, you can calculate your PNL at any percentage and even set limit orders before hand. Since I don't know your leverage size, I'll use a simple example.

Say I long Bitcoin with a 10x leverage and want to automatically add to my margin position when the pnl is at -50%. If the price of Bitcoin at initial entry was $100,000, - 50% pnl price can be calculated:

100000 * 0.05 (actual percentage)  = 95k which is actual drop in price since you're using 10x leverage where 10 * - 5% gives -50%.

___________________________

Depending on the exchange you trade with, there are usually tools that made the calculation easier. You should check them out.

Trading bot might help you to automatically re-entry based on a specific price range that you set. I’m not sure what exchange you are using but Binance trading has a feature of re-entry for a specific condition that you set based on the market price.

---

Negative PNL usually display on your main balance summary for example on derivatives. AFAIK most of exchange has a PNL summary daily on each coin that you trade.

Juts do not bother yourself. I will advice you to practice future trading with like low amount of money several times. You will understand all these.

You can open a position with just $2.5 and be doing all you want to do. You will understand how everything is very easy to know and understand.

---

Trading is very risky.

What I mean is this...lets say I have two points in the chart:

first point is the price entry (where I open a long position)

lets say I open a Long  Position and I decide that half way through my trade which is going badly I want to open another position..exactly in the middle of the two points in the chart

Its a Mathematical Trading Strategy so I need that this new position is opened exactly in the middle of those two points

Sorry for my english

Look at the coin that I am trading presently. I will call it gambling because it is not a well known coin and it is very volatile but I want to use it to explain to you.


   

Right Image is when I am gaining right now. Left image is when I am losing. All taken right now as it is a coincidence to have both.

You can see the amount that I am winning in green. You can see the amount that I am losing in red. Beside both green profit and red loss, you can see the percentage loss or profit. I think it is called ROE. Return on Equity.

But if you increase your leverage, this will not be accurate. It has to be 1x. If you increase the leverage without increasing the position size, the amount you used will reduce in respect to the percentage, making the percentage profit and loss to increase but which is not what it supoosed to be as you have higher amount in your trading account. But if you have been trading, you will get use to it.

This is what I mean. Take note of 1x and the 50x leverage.

   

I only increased the leverage and not the position size. The same risks. More funds would be in my future account which will leave the position size and be replaced by leverage, the amount I used to trade reduced, making the percentage profit increase.

If you are not pleased with that, some exchanges have trading calculator. I have seen it before on exchanges like Binance.

Yes I know the amount of money that I am losing but I want to know when my first posities reaches  negative 50% PnL (is for a strategy that I am using)

It is a derivative market trading. If you have 50% PnL loss, the exchange will let you know the amount of money that you are losing. Also you can see the remaining money on your future account. I do not think there is any calculator needed for that.

Hi guys lets say I wanted to open a new position when my first position gets a -50% PNL what would be the fastest way to calculate this? and what tools could I use so I can open my second position as fast as possible..it would be for crypto exchanges...