I am missing the point as to how to use it. Here I have Price Range Top to Bottom:
Top 0,8435 0,8285 0,8141 0,8001 0,7866 0,7735 Mid Point 0,7596 0,7457...Current Price = 0,7476 0,7318 0,7179 0,7040 Bottom
Price Step = 1,69 % change per step relative to the Mid Point, so the steps Up are the same percentage as the steps Down.
The Ln Stochastic Calculation gives
As I can't see how the Ln-Difference Ratio relates to the trade step size of the ladder I used, I have also calculated the EXP(Ln Ratio), but that also does not anything anything useful for me.
Then I tried the log base 10 and got this:
10^0,332364924 = 2,1496.....….use 2: for the LST 10^0,667635076 = 4,6519504....use 5: for the 1-LST
(Instead of the Napier version in the chart)
The current price is about 2 steps below the Mid Point price
How could I use these values to generate the Trade Size Ladder.
And why are there two different expressions for the LST Parameter?
If you had given one Parmeter I would have gussed that for the current proce I should execute a Buy with 5% of the Reserve at that point.
And as the price drops more the percentage multiplier of 5% gets larger... Right?
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