Discussing the article: "Developing a Replay System — Market simulation (Part 24): FOREX (V)"
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Check out the new article: Developing a Replay System — Market simulation (Part 24): FOREX (V).
Today we will remove a limitation that has been preventing simulations based on the Last price and will introduce a new entry point specifically for this type of simulation. The entire operating mechanism will be based on the principles of the forex market. The main difference in this procedure is the separation of Bid and Last simulations. However, it is important to note that the methodology used to randomize the time and adjust it to be compatible with the C_Replay class remains identical in both simulations. This is good because changes in one mode lead to automatic improvements in the other, especially when it comes to handling time between ticks.
This method, known as the "least effort path", is effective in situations where the number of movements required is less than the total distance to be walked. This avoids choices that could lead to unnecessarily long and complex routes. Due to this computational approach, some discussions and methods proposed in this article may not appear in the final application. The following two figures illustrate the effectiveness of the system: a graph based on real tick data, and a simulation result using the least effort strategy.
Figure 02 - Chart based on real data
Figure 03 - Chart generated using data simulated by the system.
Although at first glance the charts may seem identical, they are not. A closer look may reveal differences, such as the data source listed in each figure to highlight the differences between them. This comparison invites users to conduct an experiment using the data presented in the application specifically for the EURUSD asset, i.e., a forex currency pair. This demonstration shows that the simulation method can be adapted to both Last and Bid plotting types, allowing the performance of the system to be tested against existing data.
Author: Daniel Jose