floating spread

To add comments, please log in or register
hadher ramadhan
665
hadher ramadhan  
how they calculate the floating spread each tick ? for each broker is there any math equations to achieve that ? if you test too many robots on strategy tester absolutely you notice the big difference between real market environments and your tester's !!! the main difference is due to floating spread but if we know the equation then we could get the real Ask price then the real markets environments could be applied am i wrong   ???
AleZzabba
36
AleZzabba  
Prices are generated by the exchanging operations in the market. The price you see on the chart is the only real exchange price which is the Bid. Borkers artificially creates the Ask in order to gain their part, but when the market moves very fast, the Bid run away faster than every attempt to recalculate the Ask, so you can find the Ask calculated for a Bid price of some milliseconds before and the spread could be larger (or sometimes smaller) than the average one decided by the broker. That's not an equation, it's an unpredictable behavior of the market and must be considered as a random variable. Your system needs to be loose enough in order to make it negligible.
William Roeder
19654
William Roeder  
In addition, brokers artificially increase the spread at end of day (5pm ET) and before news events. On my broker, GBPJPY averages 2.6 but averages 12.2 at EOD.
Uche Celestine Obi
4106
Uche Celestine Obi  

floating spread for eurusd:

(SymbolInfoDouble("EURUSD",SYMBOL_ASK)-SymbolInfoDouble("EURUSD",SYMBOL_BID))/SymbolInfoDouble("EURUSD",SYMBOL_POINT);

Giovanni Riccobene
147
Giovanni Riccobene  
i always test on the worst condition, so i set spread in tester never less than 30 point!!!!
hadher ramadhan
665
hadher ramadhan  
then it is a random operation !!! that remind me the Swiss frank crisis 15-01-2015 when the  spread pumped to 250 pip ,,,i am a skeptic... the broker leave his profits to a random events i think there is such equation .. but it is top secret for each broker ...is there any broker in this forum to clear my view 
To add comments, please log in or register