Download MetaTrader 5

Fake Forex prices - Bid only charts, show Buys ON the Bid only bars

To add comments, please log in or register
researchpro
57
researchpro  

Forex charts are nonsense bid only bars.  Yet when a backtest is ran on your EA , it will show the Buy Entry price arrow on the Bid Bar chart. That's impossible. It's a bid bar chart, not an ask bar chart. A buy is at the ASK not the bid. The Ask price, you pay when you actually make a real buy is always ABOVE the bid bar. So how come the backtester always shows your BUY(ask) fills ON the Bid price bar?

Very misleading. All technical indicators will also be skewed to the bid side of price action. 

Stuart Browne
6687
Stuart Browne  
researchpro:

Forex charts are nonsense bid only bars.  Yet when a backtest is ran on your EA , it will show the Buy Entry price arrow on the Bid Bar chart. That's impossible. It's a bid bar chart, not an ask bar chart. A buy is at the ASK not the bid. The Ask price, you pay when you actually make a real buy is always ABOVE the bid bar. So how come the backtester always shows your BUY(ask) fills ON the Bid price bar?

Very misleading. All technical indicators will also be skewed to the bid side of price action. 

As far as I know, when running in backtester the Ask price will be the Bid price plus whatever you set in the backtester as spread to "simulate" an Ask price. But can't say I've ever really looked closely at it so could be wrong. The problem is due to MT not recording Ask and/or Spread
researchpro
57
researchpro  
Stuart Browne:
As far as I know, when running in backtester the Ask price will be the Bid price plus whatever you set in the backtester as spread to "simulate" an Ask price. But can't say I've ever really looked closely at it so could be wrong. The problem is due to MT not recording Ask and/or Spread

Oh Yes you're right, the price the EA fills at is the correct ask, however the arrow which it displays on the 1 minute chart, is pointing to a bid price, making it look like your orders are getting filled within the range of the bar. However, it's completely false, because the buy fill was actually made HIGH above the bar.

So looking at the arrows on a chart, after the EA has ran a back test, has no basis in reality, except for the Sells. Your buy arrows will be on the correct bar time time, but not on the actual price you were felled, not even remotely close 

Stuart Browne
6687
Stuart Browne  
researchpro:

Oh Yes you're right, the price the EA fills at is the correct ask, however the arrow which it displays on the 1 minute chart, is pointing to a bid price, making it look like your orders are getting filled within the range of the bar. However, it's completely false, because the buy fill was actually made HIGH above the bar.

So looking at the arrows on a chart, after the EA has ran a back test, has no basis in reality, except for the Sells. Your buy arrows will be on the correct bar time time, but not on the actual price you were felled, not even remotely close 

If that's the case (don't have time to check it right now), please send it through to the Service Desk as a suggestion for improvement

To add comments, please log in or register