Understanding optimal positions

[t3chap]

In a 'static' production system, I'm trying to get the optimal position values. I'm using a buffer, so I get a lower_position and an upper_position.

I'm trying to internalize the logic here.

Assuming we have no position in an instrument, if the lower position goes to -.51 would we enter 1 short? We would enter an additional position at -1.51, correct?. With our 1 short position, if the upper position goes to -.4 would we stay short one contract or close the position?

I'm using a smaller account value so I think these smaller numbers are confusing me.
I believe the convention in Advanced Futures Trading Systems book is to round to the nearest whole number. However, with the smaller upper and lower position values the granularity is large and it is confusing to me.

So with these values : -0.454923 -0.320704 with no position we'd stand pat. With a short position would we liquidate and go to zero?

Or with these values: 3.444250 3.574252 should we have 3 or 4 contracts long?

Thanks for your help.

[t3chap]

I guess using the formulas from the book, if

C < BsubL : buy (BsubL - C) contracts if BsubL > .5

C>BsubU : sell (C - BsubU) contracts if BsubU < .5

Is this the correct approach for a small account?

[robcarver17]

Are you using buffering here, because that will affect your results.

You should round buffers to the nearest whole number and then trade to those rounded numbers.