Looking for assistance in the below because it is causing some issues, and because I have tried many things and just need help.
It seems like the trade performance isn't matching profitable trades at times in this scenario:
- I enter a trade long, the market goes down 10 points
- I enter another trade (without exiting the first) and set a profit target of 3 points, yet the average price is now at first entry minus 5 points
- when I hit the target, my realized PnL shows +profit from the 3 points I won on the second trade
- The market goes up by another 3 points, now at 1 point higher than my average entry price from the two trades (one of which I've already exited)
- my Unrealized PnL shows +1 point to the positive. At this moment, my unrealized is positive from my first trade, and my realized is positive from the second trade I already exited
- Upon exit, I lose PnL, because the profit is calculated from the average entry price, not the total PnL of that first trade's entry point.
- This is a simple example, but I am building strategies with several interim targets on different markets and it can often appear as if I can exit my trades and have a positive PnL at the end, but this often seems to not happen
seeking your help in the simplest solution to know if when I exit, my realized PnL will not be less than it's current value / finding an accurate total of if my sum trades are profitable or not at a given moment. Looking for this help because it is causing issues and because I've tried a lot of things.
Thank you!
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