Why GMT Offset is so Important for the AOTI and other Indicators and EA’s?

Why GMT Offset is so Important for the AOTI and other Indicators and EA’s?

6 December 2017, 13:29
Alexey Minkov
0
191

Why do we need a GMT Offset? What is it? Why is it so important? I often hear these questions, and today we will find the answers.

If you’re not interested in reasoning, and you don’t want to read the entire article, I just say the following:

GMT Offset is very important for correct operation of Indicators and Expert Advisors.

But not for all and not always!

If the time filter for your Expert Advisor or Indicator is an important module, then you need to be mindful of choosing the right GMT Offset. How to do it I wrote earlier.

Now let’s see in detail.


The cause of GMT Offset?

Now, let’s look at two charts. The first is taken from a broker with GMT +2. Second – with GMT +1.

First Broker (GMT Offset +2)

Second Broker (GMT Offset +1)

As we can see the time opening (00:00), if GMT Offset is different, is in different places.

You may say: But the difference is only one hour!

Yes, it is. But even if the difference is only one hour, it is still a difference. If you’re exploring for a few days, and, moreover, a few currency pairs, the difference will be more and more.

And as a result, we can obtain is not the result expected by the author of an Expert Advisor or Indicator.


GMT Offset in the All-in-One Trade Indicator (AOTI)

First Broker (GMT Offset +2)

Second Broker (GMT Offset +1)

As we can see, the signals appeared at different times, but they are correct. All because we used the correct GMT Offset for each of the brokers and the levels calculation was correct.

Daily Levels can be a bit on different levels – this is normal, because of different brokers, besides the GMT Offset, there are different quotes that change the calculation.


But if we disable the automatic detection of GMT Offset and set manually the value of GMT Offset = 2, at a broker who’s GMT Offset is +1, then we see the following:

As the market is not very volatile, we saw very similar levels for today. But yesterday’s levels, with that GMT Offset, has changed more strongly.

But if the market is volatile and price shows significant movements, we may get completely different levels, unlike those planned by the developer.

I hope I was able to answer the question about the importance of the GMT Offset for some Indicators, Trading Systems, and Expert Advisors.

Product: All-in-One Trade Indicator (AOTI)

Product URL: www.mql5.com/aoti


Good Luck & Big Profits,

MAFX Solutions



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