Using a Virtual Order Average Price to Estimate Basket Break-Even
Summary
The document describes an average-price indicator for manually configured virtual orders. A trader enters order volumes, and the tool calculates an average price intended to show where the combined orders could be closed at break-even. Orders can also be repositioned on the chart with the mouse, allowing the user to explore how changing their placement affects the calculated average.
This is a calculation aid for managing a group of planned orders, including orders arranged in a martingale-like pattern. The description gives no formula, worked example, or evidence about execution in live markets. It also does not explain fees, slippage, funding, margin use, or the risks of adding to losing positions. The calculated level should therefore be understood as a simplified price estimate rather than a guarantee that the basket can be exited without a realized loss.
Key ideas
- The indicator calculates a volume-weighted average price for manually specified virtual orders.
- That average can help estimate a price level for closing the order group near break-even.
- Users can move the virtual orders on the chart and observe the resulting calculation.
- The description provides no treatment of trading costs, execution, or margin risk.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.