Does Strategy Test Report factor in spread costs?

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David
13
David  

Hello,

I'm relatively new to MQL, so please go easy on me. I've searched the forum and could not find that this has been specifically discussed.

Question: Does the "Total net profit" shown in the Strategy Tester Report take into account spread costs?

I understand that spread costs can be variable (particularly for dealing desk brokers), but is there some approximation that is made for spread costs, which are then somehow subtracted from the "Total net profit" ?

If the spread costs are not reflected in the "Total net profit," then I suppose one would have to multiply the total number of trades by some estimated transactional cost per trade, and then subtract that from the total profit.


Thanks in advance.

Simon Gniadkowski
17661
Simon Gniadkowski  
The spread is taken from the symbol MarketInfo and is used in the Strategy Tester, so you will pay the spread for each trade . . .
David
13
David  

Thank you RaptorUK.

When I print out MODE_SPREAD of MarketInfo from Strategy Tester, it outputs 30.

30 seems like a strange spread, although perhaps since my broker is a 5 digit broker, this probably computes as 3 pips?

Assuming this means a spread of 3, since Strategy Tester uses the MarketInfo spread, then each trade has already built into to it 3 pips of cost.

So for example, if my "Total net profit" shows $ 16,353, and the "Total trades" is 3526, then Strategy Tester has already subtracted out $10,478 (3526 * 3) from the "Total net profit" ... Correct?

Just want to make sure that Total net profit is truly my net profit (at least so far as Strategy Tester can estimate).

William Roeder
18331
William Roeder  
  1. On a 5 digit broker, 30 means 30 points or 3 pips. if you want the actual value use Ask-Bid (0.00020 ave on EURUSD/IBFX)
  2. For Buy you open at Ask and close at the Bid, the spread is already included in profit = (closePrice - openPrice) * changePerPoint * lots
  3. That is your net profit assuming the spread at the start of the test and NO slippage.
David
13
David  
Thanks WHRoeder. I understand the likelihood of slippage and that the spread can vary in live trading. But thanks for confirming about the net profit calculation.
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