Difference in cTraders's Margin Calculation between opening several trades separately vs. modyfying volume
Difference in cTraders's Margin Calculation between opening several trades separately vs. modyfying volume
16 Nov 2023, 10:29
During back testing I invest i.e. 5 x the same lot size of 1 Lot on the GER40 symbol on a Pepperstone account in 2 different ways:
1. separately via ExecuteMarketOrder(…) == > 5 Trades are open with 5 lots in sum ==> ok
2. via ModifyVolume(…) ==> 1 Trade is open with 5 lots in sum ==> ok
However, on 1. the “Margin Used” is 5x the initial margin of 38,39 € = 191.96 (which I recognize as correct),
while on 2. The “Margin used” is computed via the “little Gaussian” formula y = x * (x+1) /2 giving 5 * 6 /2 * initial margin = 15 * 38,39 = ca. 575.85 (which I recognize as wrong)
Can you please explain this behavior?
Replies
PanagiotisCharalampous
17 Nov 2023, 06:51
Reply to: Difference in cTraders's Margin Calculation between opening several trades separately vs. modyfying volume
Hi all,
Which version do you use?
Best regards,
Panagiotis
@PanagiotisCharalampous
PanagiotisCharalampous
17 Nov 2023, 06:52
Reply to: Difference in cTraders's Margin Calculation between opening several trades separately vs. modyfying volume
Hi all,
Which version do you use?
Best regards,
Panagiotis
@PanagiotisCharalampous
ME-Pepper
17 Nov 2023, 10:50
RE: Reply to: Difference in cTraders's Margin Calculation between opening several trades separately vs. modyfying volume
PanagiotisCharalampous said:
Hi all,
Which version do you use?
Best regards,
Panagiotis
4.8.30
@ME-Pepper
ncel01
16 Nov 2023, 12:19 ( Updated at: 16 Nov 2023, 14:17 )
Wrong margin calculation
Hello,
3 months ago I've reported a similar issue with margin calculation during backtesting:
https://ctrader.com/forum/calgo-support/41606#post-104078
Despite this calculation being very basic and crucial for risk management, I have double-checked this and "surprisingly," the issue persists.
Conclusion: Due to the inconsistencies in cTrader's calculation, I will continue to use my own calculation.
@ncel01