MTP development notes 13｜Master TP is not necessarily the correct answer. For a Slave, there is an exit suitable for a Slave.
Hello, this is Tsumo.
This article isthe 13th entry of the MTP Development Notes.
Today as well, I’ll talk about a story that won’t collapse before victory.
The theme this time isMaster TP and Slave Unique Exit.
When using a Copy EA, you can’t help thinking like this.
Master bought.
Slave buys as well.
Master has a TP.
Slave aims for that exit too.
Master waits for take profit.
Slave waits for the same exit as well.
At first glance, it seems correct.
But in MTP, we view this from a slightly different perspective.
Master TP is important.
However, it isthe Master’s exit.
For slaves, there is a Slave’s entry/build price.
For slaves, there is a Slave’s average entry price.
For slaves, there is a Slave’s cost.
For slaves, there is a Slave’s available margin.
In other words,the Slave has its own exit.
Master TP is only a reference.
But the final decision is made based on the Slave’s average entry, cost, and account status.
Today I’ll talk about that.
MTP-related products are here.
MTP: Master 【Free】
https://www.gogojungle.co.jp/tools/indicators/79103?via=usersMTP: Slave【Paid】
https://www.gogojungle.co.jp/tools/indicators/79106?via=users
Master TP is decided by Master’s circumstances
First, the premise.
Master TP is determined by Master-side circumstances.
Master’s entry price.
Master’s average entry price.
Master’s lot composition.
Master’s floating loss.
Master’s fees.
Master’s swaps.
Master’s operating policy.
Based on these, there is a Master TP.
Therefore, what seems natural for Master as an exit does not necessarily carry the same meaning for Slave.
With a copy EA, when you see Master TP, you tend to think that is the “correct answer.”
But Master TP is not an absolute correct answer.
It is just the exit on the Master side.
If Slave’s entry price differs, the meaning of the exit changes.
If Slave’s cost differs, the required take-profit level also changes.
If Slave’s account margin differs, whether to wait or to exit also changes.
This needs to be considered separately.
In ladder/trailing moves, there are times when Slave’s entry price is advantageous
In MTP, you don’t necessarily follow Master from its first tier.
For example, suppose Master buys first.
Then the price reverses and falls.
On Master’s side, it becomes a floating loss.
But if Slave hasn’t yet followed, Slave has no position at that moment.
Then wait until the specified stage.
After the price falls, Slave buys later.
In this case, Slave may enter at a lower price than Master.
In other words, Slave’s average entry price tends to be more favorable than Master’s.
This is important.
Slave is not disadvantaged because it is “late.”
If it can enter after a retrace, there are cases where it can take a more favorable entry price.
How to use this advantage.
That’s where the Slave’s unique exit comes in.
Master is still far, but Slave can already recoup
Master buys first.
Price retraces.
Then price rebounds.
At this time, Master-side may still be some distance from the TP.
Master bought high.
Average entry price is still high.
Even when it rebounds, Master TP may not be reached.
In other words, Master-side is still in the process of recovery.
On the other hand, what about Slave?
Slave bought later after a dip.
Average entry price is lower than Master’s.
Therefore, even with the same rebound, Slave may already see profit.
What’s important here is this.
For Master, it may still be in progress, but for Slave, it can be an exit.
If you overlook this difference, Slave will wait pointlessly.
If you wait for Master TP, you might take more profit.
But if the price reverses in the middle, the floating profit on the Slave side can disappear.
Even though you entered at a favorable price, you can’t use that advantage.
That would be a waste.
What we want to consider in MTP is not to accompany Master neatly to TP.
If it can be recovered on the Slave side, recover first.
That is the judgment.
Slave Unique Exit is not to ignore Master
I don’t want this to be misunderstood.
The Slave’s unique exit is not for ignoring Master.
Master TP is a reference.
Where Master is trying to recover at what point.
At what price Master sees the exit.
Where Master’s operating philosophy lies.
This is important information.
However, there is no need to fix Master TP exactly as Slave’s exit.
Master TP is a reference.
The final decision is made on the Slave side.
This sense of distance is important.
If Slave can recover sufficiently on its side, close without waiting for Master TP.
If Slave’s profit is still thin, consider the necessary exit including costs.
If the market is strong, chase while protecting with trailing.
In other words, do not leave the exit to Master.
This is MTP’s way of thinking.
Take profits by refreshing the account, not by aligning with Master
What matters in MTP management is not taking profits at the same place as Master.
Make the Slave’s account lighter.
Prices recover from a drawdown on the Slave side.
Slave is in profit.
What you should do at this time is first to recover.
Reduce the position.
Release the margin.
Turn floating profit into real profit.
Prepare to fight again next time.
This is important.
If you wait for Master TP, you might gain more profit.
But if a reversal occurs while waiting, you lose profits you could have recovered.
Especially in operations like MTP that emphasize avoiding collapse, do not view take profits solely as a place to aim for maximum profit.
Take profits to return funds.
Take profits to reduce positions.
Make it easier to make the next decision.
Don’t delay profits just to match Master; choose exits to protect Slave’s account.
This way of thinking is necessary.
Because you look at the average entry price, you can create Slave’s unique exit
To create a Slave’s unique exit, you need to consider the average entry price.
If there is only one position, it’s simple.
But in MTP, you may hold multiple positions.
First entry price.
Second entry price.
Third entry price.
Respective lots.
All of these are combined to view the Slave’s average entry price.
What matters is not the win/loss of each individual leg.
Overall, where does it become positive?
What to look at is as follows.
Slave average entry price
Total lots
Fees
Swaps
Current price
Minimum secured profit
Account margin
This is what we look at.
If you can do this, you can decide for yourself whether to wait for Master TP or not.
Master TP hasn’t reached yet.
But on the Slave side, you can recover sufficiently.
Then, you can choose to close first.
Master TP has been reached.
But on the Slave side, profit including costs is thin.
Then you need to reassess the exit.
In other words, Slave’s exit is not determined solely by Master TP.
It is determined by Slave’s average entry price and cost.