Buying power

[kiss987]

Hello

Before opening a forex trade at a specific size (for example, 10,000 units) with my strategy i want to make sure I have sufficient buying power for that specific trade size. How can I do that?

Thanks

[NinjaTrader_ZacharyG]

Hello kiss987,

Thank you for your inquiry.

You can utilize the GetAccountValue() method call. This method call will return information about the account the strategy is running on. Possible return values are buying power, cash value, and realized PnL.

Please note that this method call will return a value of 0 on historical bars.

More information about this method can be found in the NinjaTrader help guide at this link: http://ninjatrader.com/support/helpG...countvalue.htm

Please, let us know if we may be of further assistance.

[kiss987]

When I pass the parameter BuyingPower, is the result returned in the currency my account is held?
If so,how can I translate the value for other currencies? For example, suppose my account is held in USD and I want to perform a trade in EURCHF.

Thanks

[NinjaTrader_PatrickH]

Hello kiss987,

Thank you for your response.

The Buying Power would be in USD, but the cash in the account would be CashValue.

You would have to convert the USD to the needed currency for trades on non-USD pairs.

[kiss987]

Hello,

1. I want to make sure that I understand the difference between CashValue and BuyingPower. Suppose I have 1,000$ in my account and 1:10 levarage. Is that mean that CashValue will return 1,000 and BuyingPower 10,000?

2. I need your help on the rates conversion. Suppose my buying power is 100,000$, The EURUSD current rate is 1.5, the USDCHF rate is 2.5 and I want to make a trade on the EURCHF pair. How can I calculate my maximum trade size? Will the calculation will be different depending if the trade is long or short?

Thank you

[NinjaTrader_PatrickH]

Hello kiss987,

Thank you for your response.

1. Correct, but you would want to verify that with your brokerage to be certain - just in case there is nothing else that needs to be considered. In general, what you listed is the case.

2. The Maximum Trade Size is generally something you decide based on rick, however your brokerage may have a set Maximum Trade Size based on there requirements for your account size. I would check with them directly.

However, if you wish to calculate the second item in simulation trading (on the Sim101) please let me know.

[kiss987]

Hello

Regarding question 2:
a. I am not familiar with the term 'rick'.
b.On previous response you've declared: "The Buying Power would be in USD,...
You would have to convert the USD to the needed currency for trades on non-USD pairs."
My question is how do I convert the USD to the needed currency. I'm reapitng my previous example:

Suppose my buying power is 100,000$, The EURUSD current rate is 1.5, the USDCHF rate is 2.5 and I want to make a trade on the EURCHF pair. How can I calculate my maximum trade size?

Thanks

[bltdavid]

a. I am not familiar with the term 'rick'.

Perhaps a typo?

rick = risk?

[NinjaTrader_PatrickH]

kiss987,

An unfortunate typo, but it would "risk".

For the Maximum Trade Size question, figure the USD conversion for the non-USD pair.

So EURCHF, in this example CHF is valued as 1.1 to 1 EUR, in this example USD is valued as 1.01 to 1 CHF. You factor your trade size based on 1.01 in USD for the EURCHF.
Then you factor how much you want to risk of your Account Value. There are different approaches to this and it is up to you to decide what your Maximum Trade Size will be based on, but make sure to check with your broker to verify they are going to allow that size.

I also found a post on another forum that may be of benefit to you here: http://www.forexfactory.com/showthread.php?t=424695

[kiss987]

Hello

I would like to make sure I understand: The value will be calculated based on the SECOND symbol in the pair I am trading, right?

For example, if I trade in 10,000 EURUSD (EUR is the first symbol and USD is the second), it means I have used 10,000 USD of my buying power.

Another example, I trade in 10,000 EURJPY (EUR is the first symbol and JPY is the second) it means I have used the equivalent of 10,000 JPY of my buying power. And suppose 1 JPY = 2 USD, it means I have used 20,000 USD of my buying power.

Am I right?

Thanks

[NinjaTrader_PatrickH]

kiss987,

You are correct.

[kiss987]

Suppose my total buying power is 10,000 and I have an open position which is using 6,000 of my buying power. Will the GetAccountValue(BuyingPower) will now return 4,000?

Thanks

[NinjaTrader_PatrickH]

Hello kiss987,

Thank you for your response.

I could not guarantee that, I would just test it out in a strategy.

[kiss987]

I will test it.
Is there a way that can guarantee my CURRENT buying power (in the example below 4,000)?

Thanks

[NinjaTrader_PaulH]

Hello Kiss987,

BuyingPower is updated after each order and is received directly from the brokerage. You could choose to calculate the buying power yourself based on an initial account value, or you can use the value as this is returned from the brokerage.

If you feel the value returned from the brokerage is incorrect, you will need to take that up with the brokerage.