How is current avg entry calculated?

[ntcoder256]

HI, Been trying to figure this out manually in simulator but I'm still not certain it's the same as when live in the market...

Say I buy 6 MES Contracts.

2 at 4800
1 at 4802
3 at 4806

Is avg entry, as shown by the built in indicator, calculated as simply as:

4800 + 4800 + 4802 + 4806 + 4806 + 4806 / 6

Then say I sell One of the 4800 contracts now it's calculated:

4800 + 4802 + 4806 + 4806 + 4806 / 5

I haven't changed anything with FIFO it's whatever the NT 8 default is.

thanks!

[NinjaTrader_Erick]

Hello ntcoder256,

Thank you for reaching out.

For a live account, the position averaging will be controlled by your broker.

Simulation accounts always calculate as FIFO.

So yes, your assessment is correct on how the average is calculated.

The average position price is the average price for each contract entered. If you bought 5 contracts at 100, the average entry price is 100 because (100+100+100+100+100)/5 = 100.

If you want to add contracts at the current market price to adjust average entry price to 120, you can use algebra.

For example, you can set up the following equation and solve for x to get the number of contracts you need to buy to adjust the average entry price.

(500 + 150x)/(5 + x) = 120.

Please let me know if I may be of any further assistance.