I have configured a EUR/USD 'mini' contract that I trade with one of my brokers:
- Tick size = 0.0001
- Point value = $10,000
The 'Point value' in the instruments manager is described in the NT help guide as "The currency value of 1 point of movement for the instrument". And the 'Tick size' as "the increment value the instrument trades in".
According to these definitions the value of tick in the instrument I configured should be $1 = 0.0001*10,000. Right?
I have then back tested a strategy on this new instrument and when I look at the results it seems the PnL is off by a factor of 10.
For example, the strategy generated a short sell of 10,000 at 1.3635 which is then closed at 1.3626. That is a 0.0009 difference or 9 ticks.
In the 'Trades' tab of the Strategy Analyzer I can see the following:
- When reporting in 'Points' the Profit column shows 9
- When reporting in 'Currency' the Profit column shows $0.90
The price moved 9 ticks and since the tick value is $1I therefore expect to see a Profit=$9 instead of $0.90.
How can this be explained?
thanks
Maese
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