Reply

point value in $

11 replies

mc74

Subscriber, bbp_participant, community, customer, sq-ultimate, 20 replies.

Visit profile

7 years ago #116272

Hi

 

Can anyone tell me how the “point value in $” is calculated for different currency pairs?

 

it seems like this number can change over time, so the suggested numbers in the link below may not be useful?

 

https://pages.strategyquant.com/strategyquant-data-setting/

 

thanks

 

0

tomas262

Administrator, sq-ultimate, 2 replies.

Visit profile

7 years ago #141343

Hello,

 

you always need to use the current market rate to get the point value in USD for non-USD pairs

Let’s say you need the point value for EURCAD. It is 100,000 CAD of quote currency. Since the current CADUSD rate is 0.764 at the moment, the point value to set in SQ is 76,400 USD

0

mc74

Subscriber, bbp_participant, community, customer, sq-ultimate, 20 replies.

Visit profile

7 years ago #141347

thanks tomas good info

0

mc74

Subscriber, bbp_participant, community, customer, sq-ultimate, 20 replies.

Visit profile

7 years ago #141348

tomas

 

whenever we update this point value in the symbols to reflect changes in the pairs, do we then need to import data all over again?

 

thanks

0

tomas262

Administrator, sq-ultimate, 2 replies.

Visit profile

7 years ago #141369

Hello,

 

no need to re-import the data. But if you update the point value it will affect strategy results later when testing

0

sansay

Subscriber, bbp_participant, community, 11 replies.

Visit profile

7 years ago #141392

OK this topic is exactly what I have been wondering about. I am currently developing strategies for USDMXN. Upon the first run I immediately realized that something was wrong when I saw strategies that would return millions of dollars over the last 10 years. So, I identified 2 issues with my data setup: 
1. Point value was set at $ 100,000. All my research led me to believe it should be 100,000 * (1/20.48) = $ 4881 (approximately)

2. Spread was set at 3. Looking at many dealers it moves between 10 and 20 pips. So I set it to 15 pips.

 

Can anybody here please confirm or correct?

0

tomas262

Administrator, sq-ultimate, 2 replies.

Visit profile

7 years ago #141402

Hello,

 

are you sure about trading USDMXN? With such HUGE spread most of your profits will be eaten by your broker

0

sansay

Subscriber, bbp_participant, community, 11 replies.

Visit profile

7 years ago #141411

Hi Tomas,

 

yes, I know, it can only work with low spread brokers. Actually I found out that it varies a lot. During the busy hours it can be around 6 pips. Also note that I already had the suspicion that this pair would not be a major earner. But, as I like to say: every little bit helps.

But just to be sure: was my computation of point value for USDMXN correct?

I set it to 4881.

0

tomas262

Administrator, sq-ultimate, 2 replies.

Visit profile

7 years ago #141456

Yes, since USDMXN represents 100,000 MXN which is about 4881 USD considering the current FX rate

0

Gin

Subscriber, bbp_participant, 95 replies.

Visit profile

9 months ago #283557

why do you call it point value?

1 lot value in $ would be clearer?

0

Massimo Scapini

Subscriber, bbp_participant, customer, community, sq-ultimate, 44 replies.

Visit profile

9 months ago #283564

My Broker account is in Euros and I have set all my Point values accordingy. All strategies’ results should be then in Euros (regardless what is displayed in the graphs and tables)

Am I missing something ?

0

tomas262

Administrator, sq-ultimate, 2 replies.

Visit profile

9 months ago #283574

The “SQ Point value” represents the monetary value of the smallest whole-number price increment in an asset on the left side of the decimal point per 1 lot / contract / share. For example, if an asset goes from 1234.5 to 1235.5, we can say that the asset rises by 1 point. If a stock price increases from $100 to $102, it has risen by two points that is $2

0

Viewing 11 replies - 1 through 11 (of 11 total)