Tick 2 Win

What is Tick 2 Win?

Tick 2 Win is a specialized tool designed for traders who want to make informed trading decisions by understanding the precise number of ticks required to turn a net positive profit, after accounting for trading fees. By considering the type of order—whether it's a maker or taker on entry, exit, or both—Tick 2 Win provides a comprehensive table that demystifies the transaction cost landscape.

Not just limited to tick information, Tick 2 Win also offers valuable metrics about the trading instrument. This includes data like the tick size in dollar terms as well as its percentage relative to the current trading price, providing a fuller picture of the market conditions.

By integrating all these critical details, Tick 2 Win serves as an indispensable resource for traders looking to optimize their strategies, minimize transaction costs, and improve their overall profitability.

How is it calculated?

Tick 2 Win calculates the number of ticks needed for a trade to be net positive by using a straightforward yet robust formula that factors in various components like the current price, tick size, and associated entry and exit fees for different types of orders.

Calculate Total Fee: The total fee is calculated by first determining whether you are a maker or taker for both the entry and the exit transactions. Depending on this, either the makerFee or takerFee is used for both entry and exit. Total Fee = (Entry Type = "Taker" ? takerFee : makerFee) + (Exit Type = "Taker" ? takerFee : makerFee) / 100
Initial Calculation for Ticks to Win: Next, multiply the total fee by the last traded price (lastPrice). Divide this value by the tick size (tickSize), rounding up to the nearest integer to get the initial estimate for the ticks needed to break even.
Initial Ticks to Win = ceiling((Total Fee * Last Price) / Tick Size)
Adjust Ticks to Win if Necessary: Finally, confirm that these ticks actually cover the total fee. Compare the total fee in dollar terms (Total Fee * Last Price) to the ticks multiplied by the tick size (Tick Size * Initial Ticks to Win). If the latter is smaller, increment the number of ticks needed to break even by 1. If Total Fee * Last Price >= Tick Size * Initial Ticks to Win, then Initial Ticks to Win += 1

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Last updated 1 year ago

What is Tick 2 Win?

How is it calculated?

Calculate Total Fee: The total fee is calculated by first determining whether you are a maker or taker for both the entry and the exit transactions. Depending on this, either the makerFee or takerFee is used for both entry and exit. Total Fee = (Entry Type = "Taker" ? takerFee : makerFee) + (Exit Type = "Taker" ? takerFee : makerFee) / 100

Initial Calculation for Ticks to Win: Next, multiply the total fee by the last traded price (lastPrice). Divide this value by the tick size (tickSize), rounding up to the nearest integer to get the initial estimate for the ticks needed to break even.

Initial Ticks to Win = ceiling((Total Fee * Last Price) / Tick Size)

Adjust Ticks to Win if Necessary: Finally, confirm that these ticks actually cover the total fee. Compare the total fee in dollar terms (Total Fee * Last Price) to the ticks multiplied by the tick size (Tick Size * Initial Ticks to Win). If the latter is smaller, increment the number of ticks needed to break even by 1. If Total Fee * Last Price >= Tick Size * Initial Ticks to Win, then Initial Ticks to Win += 1