Support Board
Date/Time: Wed, 12 Mar 2025 06:04:05 +0000
Post From: flat to flat open position average price calculation
| [2019-04-03 19:09:56] |
| User753428 - Posts: 171 |
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The way that flat to flat open position average price is calculated in SC is that it takes the average of all prices at which a position was entered until the position is completely flattened to zero. This creates an inaccuracy when you scale out and then scale back in again. For example, Let's say I: 1) buy 1 NQ at 7500 2) buy 1 NQ at 7510 3) buy 1 NQ at 7520 at this point, my flat to flat open position average price would be +3 NQ @ 7510. 4) then i sell 2 NQ at 7530; now my flat to flat open position is +1 NQ @ 7510. 5) then i re-enter and buy 1 NQ at 7520. at this point, my flat to flat open position average price should technically be 7515, since it's (1*7510+1*7520)/2 but the way SC calculates flat to flat open position average price is that it disregards any scaling out that i had done previously and instead, continues to include every single buy fill in the flat to flat open position average price even after having been scaled out. so in this case, when i re-enter and buy 1 NQ at 7520 in step 5), my new flat to flat open position average price is actually calculated like this: [(7500*1)+(7510*1)+(7520*1)+(7520*1)]/4 = 7512.5 Perhaps this is as intended by SC's design. However, not only is this incredibly unintuitive, during all my years trading, I have not once used a futures trading platform that computes the flat to flat open position like this; in fact, i have yet to see even a single crypto platform/exchange calculate flat to flat like this. and it makes sense as to why they do not calculate flat to flat like this. traders want to know what the average price of their currently OPEN positions are in real-time, accurately and quickly so they can immediately know at which price point the price has to cross before the PnL of their cumulative OPEN positions goes into the red. at least under SC's current methodology, it should not be called flat to flat "open" position average price calculation in any case. |