Hi guys, I was wondering whether it is possible to incur slippage during backtesting and trading with demo account. Because I was constantly hit with slippage but I understand demo trade and backtesting shouldn’t have any slippage… Did any of you incur slippage during backtesting and demo trade too?
*I do use tickstory for the tick data for 99% quality…
You could try to just increase your set spread on your backtest. But most likely you are trading with to tight stops. And that is likely because you trade small timeframes.
Try to start with swing/longer term trading first. It’s a marathon, not a sprint.
Good luck! :23:
Thanks Dutchtrader1!
Because I initially thought slippage doesn’t occur during demo trade or backtesting as they are not real trades thus do not need to be filled and can be executed right on the predetermined price accurately without error.
Are you confirming that slippage can occur even during demo trading and backtesting? Or is it something wrong with my EA? :rolleyes:
I think it would depend on the broker’s demo system. If they are filling orders based on the live market price feed and not based on the assumption that your order price would have been touched, then I would expect to see demo trade slippage.
For example, say EUR/USD is at 1.2000 and you have a stop order at 1.1995. A news item hits that takes the market instantly to 1.1990. In real life you’d get filled at 1.1990 (unless your broker offers guaranteed fills). If the demo trade platform works off the live prices in the same fashion, you would see the same type of slippage. If, on the other hand, the demo platform does guaranteed fills or otherwise assumes that your stop level would have been hit, then no slippage.
For the sake of accurately testing your system, I would hope the demo platform works off the live prices.
Wow, I didn’t know demo can do that.
I’m using Darwinex as my broker. I asked them about these and they were surprised too and stated that this should not happen that demo accounts shouldn’t incur any slippage. They sent an email to their MT4 provider and the MT4 provider said it’s probably due to my EA.
I guess it’s my EA too, as I was even hit with slippage while backtesting with the tickstory’s tick data from dukas for 99% model quality.
Any ideas how an EA might have cause slippage?
In general concept My EA executes orders like this.
When price is above x, buy at x.
If(ask >= x)
Ordersend(, OP_BUY…, x,…)
If(bid <= x)
Ordersend(…, op_sell, …, x)