Clarifying XAUUSD spread
Thank you for reply.
Yes , i had developed a quite nice strategy based on row price movement.
One of the key parameter is price moving up/down for w points .
Intention is to set it based on ATR value and it will fluctuate around few hundreds points( w>100pts).
History tick data provider ,ones that offer it for free ( mentioned above),seems to have unreasonably high spread ( about 50 or higer).
This is way too high for strategy rellying on scalping.There are brokers that seem to promise acceptable spread range( even above 10 points).
Issue is that you have to open demo or even better live account to get true and reliable rates feed data.
Say for final strategy testing for example.
What i need is only to somehow figure out how to take spread into used algorithm .
There is a huge difference spread being 50 points or more or only 10 or less.Issue is the absence of reliable and comparable informations .
Numbers that vary almoust one magnitude away arent exactlly helpfull.
Same for ticks for example. I analysed Ducascopy ticks data and qualitatively they didnt differ much compared to MT5 demo.
Not to extent that really matters for my strategy( except for excessive spread thats way to high to be acceptable).
So the only solution is to " buy a cat in a bag"(not sure you will understand ,that is our local expresion) ?
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Please somebody help me with this.
I know that this is a simple and basic ,maybe even stupid question to ask ,but it still give me a headache.
Anyway , here it is:
What is a tipical(average,expected whatever you want to call it) spread on XAUUSD preferably on ECN type accounts.
Of course ,i know it is subject to change trough time( do to change in market conditions, events,low or high liquidity and so on) or broker been chosen (since there is no unified rates feed provider).
This however is not my key issue.It is that ,when looking on different source of data on the internet, i get a different "picture" of it.
It is essentialy for me to clarify the numbers i get.So let try to put down some numbers that i find :
1.)On MT5 (demo account, no broker ) tipically ( for example) : Ask =5050.50 Bid=5050.30 So, spread is 0.20 ( That is equal 20 points since 2 digits after decimal point.Is this 0.2 pips or 2 pips?
Since different interpretations seems to exsist.)
2.)After that(also as example) : Ask = 5091.875 Bid = 5091.375 Spread =0.50 (This one are from Ducascopy tick data,midle of a day ,no major events ,"normally" high ( pressumed) liquidity and market conditions.
Since this are 3 digits data : Spread = 500 points (?) How many pips( 0.50 ?) or different?
3.)Third option : " On ECN accounts type XAUUSD spread is ultra-low ranging from 0.0 to 0.3 pips (0-3 points or cents) during active hours and high liquidity ...."
This one come from asking Google (or their AI summary interpretation anyway).
4.)Fourth option(addvertised ,clearly without naming a broker ): On our ECN accounts we offer the best spreads starting from 0.0 up to tipicaly lower than 10 points on XAUUSD.(Pressumbly also on high liquidity conditions.)
And i directly asked their support team.
Broker has 2 digit feed ( at least on their chart accessible online) So as above for example : Ask= 5050.50 while Bid= 5050.42 ( Spread = 8 points and/or 0.08 pips(?).(And It is tipically around 5 points by their chart inspection )
What of above ? How to interpret it corectlly? It seems to me that differences are not tiny but huge (like a magnitude away ).
What i am getting wrong here? Thanks.