Problems Between MT4 Simulation Results EA and Actual Live Trading Result

Problems between simulation results and actual trading result. Below are some issue that need to be address.


a) Bid-Ask spread.

This spread is normally between 2 to 4 pips for major currency pair USDJPY, EURUSD, USDCHF, GBPUSD, etc but when there are news and major movement, the spread will increase to 5 to 9 pips and 10 - 15 pips and even 16+ pips and more. This means when you buy, you already receive negative 16+ pips on that trade.



Simulation does not cover this spread as the bid-ask is always base on the latest spread in the MT4 server. Thus, news created wide pips spread are not able to capture and the buy-sell trade are not accurately simulated. This change in pips has to be taken into account when simulating by taking 2 measures. Number 1 is to set the spread limited in your EA to below 8 pips to execute a trade. Anything more then 8 will not execute any trade. Number 2 is to set your profit or trigger level -9 pips then your usual profit level when simulating. This will make sure the spread is take into account.

b) Server availability.

This is limited to the market demand, as more trade enter, the server will be overloaded and cause server busy when you want to buy or sell a currency. Then you have to execute the trade again. In case, the spread will change and affect your trade profits. Different server will have various spread and ask at the same time.Server busy will cause your trade to be invalid.

Simulate does not cover the server busy. So you have to code in a server busy reply from server and to wait 1 or 2 seconds before retry executing the trade again using "IsTradeContextBusy()". This will allow your EA to retry again when encounter server busy. You may want to have up to 5 times or 1 minute of retry.

c) Log in.

This is due to the internet connection with the MT4 server. The account is consistently ping to maintain its loggin status. When internet connection is disrupted, the auto log in will continue and at times you will see a couple of login entry in your journal.

Simulate does not over this login portion. So you have to code in to get data from the server via "RefreshRates()", This will allow the EA to try login your account prior to executing any trade.

Lastly, if you take into account the above issue, your simulation results can be a benchmark to your live trading result. Thank you

Source:  http://www.articlesbase.com/currency-trading-articles/problems-between-mt4-simulation-results-ea-and-actual-live-trading-result-737270.html



High Probability Trading Strategies: Entry to Exit Tactics for the Forex, Futures, and Stock Markets (Wiley Trading)
Click here to see 104 customer reviews and choose from 34 supliers




Technical Analysis: The Complete Resource for Financial Market Technicians, Second Edition (2nd Edition)
Click here to see 10 customer reviews and choose from 26 suppliers




Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude
Click here to see 244 customer review and choose from 34 suppliers

No comments:

Post a Comment

Top Forex Automated Trading Expert Advisor (EA)


Forex EAROI (Monthly)Profit FactorMax Draw DownS3 ScoresStar RatingAlexa.com
FAP Turbo207%31.770.32%280 points5 starsRank 31,123
GPS Forex Robot28%3.935.68%260 points4 starsRank 283,290
Forex MegaDroid19.8%NANA250 points4 starsRank 72,310
Leo Trader Pro32%2.855.84%250 points4 starsRank 213,570
Forex BulletProof11%1.3219%250 points4 starsRank 309,467
Million Dollar Pips925%2.132.58%240 points4 starsRank 75,635
Forex Growth Bot148%1.669.05%190 points3 starsRank 214,229
Forex Over Drive5.8%NA21%190 points3 starsRank 453,393

Fully editable *.mq4 files that compile successfully with no errors (3MB zip file with 200+ EA codes. Including 40+ strategies from the Strategy Book. You can download the Free Strategy Book by joining my email newsletter on the right side of this website. Click "Buy Now" to make payment and instant down the Best Forex Ranking Cook Book at USD $79 (One time payment only) Click here for more info

Please inform me if unable to purchase or download (send to sngerge@gmail.com)