Hi I have a calculation issue. Hopefully someone can help. Here's the issue:
If I had a profit target of $10 and a target pips of 5 pips, what would be the amount I have to place to hit my target profit after the commissions are deducted? I would like a formula for reuse over different profit targets and different risked pips.

i.e. What is the amount that I need to place to make $10 after commissions are taken out over 5 pips on an account with less than $5000

Thanks in advance

Be aware that there are two types of commission may be applied to your orders: volume commission and overnight swaps.
Both rates are not available from JForex-API (https://www.dukascopy.com/swiss/english/forex/jforex/forum/viewtopic.php?f=83&t=49826)
Besides, volume commission rates depend on some conditions (equity, balance, turnover).

If you provide exact data: instrument and expecting total commission, it will be possible to help you.
See more:
https://www.dukascopy.com/swiss/english/forex/jforex/forum/viewtopic.php?f=65&t=48455
https://www.dukascopy.com/swiss/english/forex/jforex/forum/viewtopic.php?f=65&t=47880

Thanks for you reply but I am not having overnight swaps added to the order. My initial balance is < 5000. Lets say the instrument is EURUSD. My order will be placed for the most a couple of hours during with no orders on for overnight. So here are the numbers:

Initial deposit < 5000
Instrument = EURUSD
Target = 10
Risked pips = 5

The question was how much amount do I place on the order so that when the target of 4 pips is made I will have approx 10 profit from the order after the commissions are deducted on that order?

Thanks

Assume that volume commission equals 35 USD per 1 million USD traded.
Then
amount = targetProfitInUSD / (100 * targetInPips - 2 * 35 * rateEURUSD)
If targetProfitInUSD = 10.00 USD,
targetInPips = 5 pips,
and EUR/USD = 1.348
then amount = 0.024652 mio EUR = 24652 EUR

Thanks. I'll try this

what is rateEURUSD ?
can you explain numbers in equation [100 and 2], i know 35 is related to commission, but what about other numbers ?

First:
i want formula that calculate commission in USD before make position ?

Second:
i want formula that calculate amount that require to take profit 10.00$ in 10 Pips without commission ?

I want this equations is valid for each currency

Thanks

It is a current price of the EURUSD instrument.
100 is a profit/loss in USD if price moves for a PIP for position size in 1 mio. To close position one must make a reverse trade with the same amount which position is opened, so the turnover is doubled: 2 = BUY + SELL or SELL + BUY.

First:it' means that 100 is constant for each instruments(usd quote, usd base, cross, etc) and any amount(millions) ? please explain more(because it doesn't work with me when i trade AUD/JPY instrument) i replace rateEURUSD to rateAUDJPY

please write equations is valid for each situations ?

Second: past equation calculate amount, i want equation calculate commissions just ?

Thanks you very mush

There is no a single formula for EACH instrument because some instruments have direct quotes to USD and other ones have indirect quotes.
So, let's assume the volume commission is 35 USD per 1 mio USD traded:
a) if one has an instrument XXXYYY and a quote XXXUSD the volume commission for a single trade in USD is
commissionInUSD = 35 * amountXxxInMio * XXXUSD;
b) if one has a quote USDXXX the commission is
commissionInUSD = 35 * amountXxxInMio / USDXXX.

It must be so because the original idea was:

In this equiation [amount = targetProfitInUSD / (100 * targetInPips - 2 * 35 * rateEURUSD)], how can i calculate amount when i trading AUD/JPY(Cross instrument).please write an example for instruments XXXUSD, USDXXX, XXXYYY(cross)

can you provide on example about how calculate commissionInUSD in instruments have direct quotes to USD and other ones have indirect quotes and cross instrument,because i don't understand what amountXxxInMio means,when you provide an example with numbers will be helpful


Thanks

Instrument = AUD/JPY, so XXX = AUD;
quote of the base currency vs USD = AUDUSD (use (a) formula);
amountXxxInMio = amount of AUD in millions, i.e. amount 1 = AUD 1000000;
commissionInUSD = 35 * (amount of AUD in millions) * AUDUSD

it's like that :
commissionInUSD = 35 * (1000000) * 0.91919
commissionInUSD = 32171.65 ?! or what

in this equation [amount = targetProfitInUSD / (100 * targetInPips - 2 * 35 * rateEURUSD)]
how will equation become if i replace rateEURUSD with AUDJPY, USDJPY and EURAUD ?

please provide example with numbers.

Thanks you

it's like that :
commissionInUSD = 35 * (1000000) * 0.91919
commissionInUSD = 32171.65 ?! or what

In this equation [amount = targetProfitInUSD / (100 * targetInPips - 2 * 35 * rateEURUSD)]
how will equation become if i replace rateEURUSD with AUDJPY, USDJPY and CHFJPY ?

[amount[AUDJPY] = targetProfitInUSD / (100 * targetInPips - 2 * 35 * rateAUDUSD)] ?!
[amount[USDJPY ] = targetProfitInUSD / (100 * targetInPips - 2 * 35 / rateUSDJPY)] ?!
[amount[CHFJPY ] = targetProfitInUSD / (100 * targetInPips - 2 * 35 / rateUSDCHF)] ?!
Thanks you

on other hand dukascopy applies the lowest of commission of Net Deposit, Equity and Traded Volume

how can i calculate commission of Net Deposit and Equity ?

For amount conversions consider using the conversion utils which are included in the JForex-API, see:
https://www.dukascopy.com/wiki/#JForex_utils
The algorithm does not depend on the source of the commission rate.

First: i read about Trading commissions that dukascopy applies the lowest commissions of (Net Deposit or Equity or Traded Volume )
i want before open position calculate commission, i know now how calculate commission based on trade volume but what about other commissions of Net Deposit or Equity that may be applied ?
i want to calculate them to determine the lowest commission will apply in my account and open position with amount including this commission you understand me ?

Second: thanks to hebasto, he write this equation to calculate amount including commission but ask you if is it right to write price of instument in this equation (rateEURUSD)
or just remove it,if you have another equation or suggest in this equation tell me

amount = targetProfitInUSD / (100 * targetInPips - 2 * 35 * rateEURUSD)

Thanks

You can't detect this from a strategy, since there is no deposit/withdrawl data available from the JForex-API.

so how can i calculate commissions of Net Deposit and Equity, have you solution for this issue please?

how can i calculate commissions of Net Deposit and Equity outside Strategy, can you provide equation to calculate them with example ?

in the last post of me, i asked you about this equation
amount = targetProfitInUSD / (100 * targetInPips - 2 * 35 * rateEURUSD)
that calculate amount including commission but if is it right to write price of instument in this equation (rateEURUSD)
or just remove it,if you have another equation or suggest in this equation tell me

amount = targetProfitInUSD / (100 * targetInPips - 2 * 35)

Thanks you