i'm back again with some newbie questions =).
I managed to develope a strategy which is relatively successfull (in backtesting) on forex (EUR/USD).
Nearly to successfull, which got me thinking, maybe my settings or my understanding of the backtesting is not correct.
I'm not sure about how to include spreads in a correct backtest simulation.
Is the slippage here correct? Let's say my broker has a 1 Pip spread. What's the correct setting in NT?
If i'm using my strategy without slippage i've got a really nice roi on the whole lot size.
With slippage however (slippage of 1) i'm in the red - no profit here.
Is slippage the correct setting for spreads ?
I too only use enterlong or short commands. Don't use limit's, only emergency stopps.
Are for this case slippage or spreads relevant? The problem is see in addition is, that backtesting only use bar data and no tickdata. Is there a way to include spreads?
Maybe you could correct my thinking. Big thanks and a nice evening.
Greetings
Tarki
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