Calculate TP for ECN account
Tick value do not change in case of ECN account or not.
The only thing that you need to adjust is, in case of function for dynamic lot calculation, to consider the commission to be payed when you calculate your lot size.
For example: if you pay $5/Lot and you want to risk 1% on your stop loss, you need to consider that your stop loss need to be 1%-$5 (in $ amount)
It's not about the tick value, it's about the distance you need to get the TP.
If spread = 10, you need 10+50 to get to the TP. But with ECN you only need 1+50, but i'm not certain about this since this apply only for bid (or ask).
Only because the spread is usually much lower with ECN accounts, this doesn't change general rules. What I mean is: where exactly you place your stops depends on the question if it's a long or short position because you sell at bid and buy at ask.
So with ECN, the ask change or the bid change?
ECN or not has nothing to do with it.
To put it simple, as an example for a long position: a long position is opened at a given ask price, but in order to close it later - in this case via a stop loss - you sell it at a specified bid price (and accordingly this is what triggers your stop). The difference between the two basically defines your risk.
If you actually just calculate like in this example (1) the current ask price minus the stop distance or alternatively (2) the current bid price minus the stop distance depends on your point of view: do you wish to include the spread in your understanding of total risk for this trade or do you consider it seperately as "risk plus spread"?
For short positions it's all just the opposite.
ECN or not has nothing to do with it.
To put it simple, as an example for a long position: a long position is opened at a given ask price, but in order to close it later - in this case via a stop loss - you sell it at a specified bid price. The difference between the two basically defines your risk.
If you actually just calculate like in this example (1) the current ask price minus the stop distance or alternatively (2) the current bid price minus the stop distance depends on your point of view: do you wish to include the spread in your understanding of total risk (=case 1) for this trade or do you consider it as "risk plus spread" (=case 2)?
Yes it has. I think you just dont get the problem. I just need to convert the TP and SL from the standard account to be accurate on the ECN account because the strategy has been made on the standard account and need to be reproduce for ECN account at the exact point.
Yes it has. I think you just dont get the problem. I just need to convert the TP and SL from the standard account to be accurate on the ECN account because the strategy has been made on the standard account and need to be reproduce for ECN account at the exact point.
It depends on how you calculate SL and TP distance.
Usually, in case of BUY order, I calculate stop levels from the Ask price and in case of SELL from Bid price. This means that if I want to use 100 pips of SL and I have 10 points of spread, the price "need to move" 90 points against me to hit SL.
If I will use Bid prices for BUY and Ask for SELL, the price need to move the real distance + spread.
There is not right or wrong, it depends on you, if you prefer to calculate the spread in your SL/TP distance or not.
Then let me put it like this and ask a question in return: with the "standard" model, don't you make the decision if you take bid or ask as reference for your stops, too? Why should this change only because the spread is lower?
Apart from that there is no accurate 1:1 translation from "standard" to ECN. They are different pricing models and a slightly different outcome is to be expected depending on the strategy.
It depends on how you calculate SL and TP distance.
Usually, in case of BUY order, I calculate stop levels from the Ask price and in case of SELL from Bid price. This means that if I want to use 100 pips of SL and I have 10 points of spread, the price "need to move" 90 points against me to hit SL.
If I will use Bid prices for BUY and Ask for SELL, the price need to move the real distance + spread.
There is not right or wrong, it depends on you, if you prefer to calculate the spread in your SL/TP distance or not.
I guess this is it. ECN TP is standard TP + spread and ECN SL is standard SL - spread
Ask = Bid + Spread
You buy at the Ask and sell at the Bid. So for buy orders you pay the spread on open. For sell orders you pay the spread on close.
- Your buy order's TP/SL (or Sell Stop's/Sell Limit's entry) are triggered when the Bid reaches it. Not the Ask. Your SL is shorter by the spread and your TP is longer. Don't you want the same/specified amount for either direction?
- Your sell order's TP/SL (or Buy Stop's/Buy Limit's entry) will be triggered when the Ask reaches it. To
trigger at a specific
Bid price, add the average spread.
MODE_SPREAD (Paul) - MQL4 programming forum - Page 3 #25 - The charts show Bid prices only. Turn on the Ask line to see how big the spread is (Tools → Options (Control-O) → charts → Show ask line.)
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Hi guys.
I have a problem to calculate a TP and SL for an ECN account.
Let me explain.
I'm developing an EA that needs a specific TP and SL. I have tested it on a standard account (with no commission but big spread) and I want to adapt it to an ECN account and keep the very specific distance.
Assuming for the example that:
-standard account has: spread = 10 points, TP = 50pts SL = 100pts
-ECN account has: spread = 1 points, TP = XX pts SL = XX pts
How should I set the new TP and SL for ECN account?
Thank you,
Arthur