Download MetaTrader 5

Develop Binary Options Strategy: How can I set spread to zero in Backtests?

To add comments, please log in or register
Improve your rating. Execute orders in Freelance service!
Simeon Preuss
89
Simeon Preuss 2014.05.20 05:58 

Hi! I want to backtest some Binary Option strategies (60s and 120s) and perhaps develop my own. The idea is to create an EA containing the strategy (exit after 1 or 2 bars) and then look out for the percentage of winning trades (I'm looking for 80%+). I'm not worried about lack of MT4 support for BOs, I found a solution for that.

A binary option is basically a bet if an asset will rise or fall in a given timeframe. If you place for example 100$ and you guessed right, you earn 70$, if you guessed wrong, you loose 100$. So I'm not interested in how many pips any given trade is gaining, but only if it was profitable at all.

My question therefore is: How can I set spread to zero in Backtests?

Harvester Trading
365
Harvester Trading 2014.08.25 18:53  

Hi ,

I wanted to do exactly the same , did you find the answer?

Alain Verleyen
Moderator
30740
Alain Verleyen 2014.08.25 19:56  
harvester:

Hi ,

I wanted to do exactly the same , did you find the answer?

You can't use the Strategy Tester as is for Binary Options, that doesn't work.

The only way is to simulate trades within your EA.

To add comments, please log in or register