The impact of the spread on trading results

 

The spread is very hard to beat. For example, take 1pips spread, it means that we essentially get a game with zero ML, not negative as in the case of even 5pips spread, not to mention the usual 30 and there is a simple tactic, small SL and its trawl takes out always and everywhere the chart is up.

the spread is 1 point, trading period 1 month, 77 k trades(brokerage companies do not need 77K points - they are good for them and for me but no, they want to take everything!)
Spread 1pips


2pips spread,
Spread 2 pips


the spread is 10 points (OC took everything and is waiting for more)

spread of 10 pips

Now let's remove trawl and leave only TP and SL of 100 points, spread is also 1 pip



 
ironfelx:

The spread is very hard to beat. For example, take 1pips spread, i.e. we obtain playing with zero ML, rather than negative as in case of 5pips spread, not to mention the commonly used 30 and there is a simple tactic, small SL and its trawl that always and everywhere moves the chart upwards.

the spread is 1 pip, trading period is 1 month, 77k trades(but DC does not need 77k points - it is good for him and for me, but no, he wants to take everything!)


2 pips spread,


10 points spread (OC took all it had and is waiting for more)


Now let's take away trawl and leave only TP and SL of 100 points, spread is also 1 pip



Wow, it is a real gem! I will hurry to open my brokerage company :)

 
ironfelx:

The spread is very hard to beat.

What kind of nonsense is that?

If you trade on ticks - so the spread is a "game condition" and should be taken into account, not "outplayed".

And if you trade on H1-H4-D1 - the spread does not play any role.

 
Georgiy Merts #:

What kind of nonsense is that?

If you trade on ticks - so the spread is a "game condition" and should be taken into account rather than "outplayed".

And if you trade on H1-H4-D1 - spread does not play any role.

Oh yes ! but your whole zoo in the aggregate leaks exactly the spread ...

 
ironfelx:

Spread is very hard to beat.

Spread 1pips, trading period 1 month, 77k trades


Great analysis done, but the conclusions are not quite right...

If your trading is heavily dependent on the spread, your strategy is to blame, not the DC...

The easiest solution is to increase strategy reliability by adding additional filter...

In this case, the number of deals per month will decrease, but the reliability will increase due to decreasing noise from duplicated signals...

There are other typical solutions to increase trading reliability...

 
Serqey Nikitin spread size, it's not DC's fault, but your strategy...

The easiest solution is to increase strategy reliability by adding additional filter...

In this case, the number of deals per month will decrease, but the reliability will increase due to decreasing noise from duplicated signals...

There are other typical solutions to increase reliability of trading...

What a strategy. Let's take SL of 10 points. TP 4000 but it does not matter. Anyway, we will trawl the SL when prices move in our direction, for example, 5 pips and transfer it from the current closing price of Bid to Buy deal and Ask to Sell at a distance of 3 pips, for example. And voila - we have the same curve up with thousands of deals at any symbol. That is, we collect actual ticks in our direction. At minimum spread, these ticks will be approximately 50/50, and the trawl increases this probability to our side. With a spread higher than 5, all this does not work.
If we add all sorts of filters and other indukes here we will get what most people get, it works then it does not.
And with no spread there is no need to filter anything, it works like clockwork or machine gun =)

 
ironfelx #:

What a strategy. We take a 10p SL. TP 4000 but it does not matter. All the same SL will trawl when the price moves in our direction for example 5 points and transfer it from the current closing price of Bid to Buy deal and Ask to Sell at a distance of for example 3 points. And voila ...

Why any doubts then...?

You want to turn shit into candy?

You'll get it right as you stomp it! - popular wisdom...

 
Serqey Nikitin #:

Why any doubts then...?

You want to turn shit into candy...?

You can't walk and you can't crawl. - Folk wisdom...

I just wanted to share an interesting observation for me. That there is a grail, but if there is no spread =))

Wherever you run it, if there is no spread, it will be like this, for five months




That's funny.
 
ironfelx #:

Just wanted to share an interesting observation for me.


Purely of academic interest... Are you writing your PhD thesis? ...

 
Serqey Nikitin #:

Purely academic interest... Are you writing your PhD thesis? ...

No, I'm not. It's more of an academic interest to me in all this probability and stock market nonsense.
That was a picture of the pound for 2019.
Now it will be the eu since 2020. And I can assure you it will be so for all instruments at any historical period.


 
ironfelx #:

What a strategy. We take a 10p SL. TP 4000 but not the point.

Unless you got something mixed up in the description, a spread close to your stop loss will always take a loss.

Reason: