You can always choose another Broker that does not charge such high commission but only a Spread. Like most of us here, that is my case.
Carnino,
I have gone through the source code and extracted the EA details for all as my minute contribution. Hope it is ok ?
EDIT:Sorry for that I have delete it
You can always choose another Broker that does not charge such high commission but only a Spread. Like most of us here, that is my case.
yes this is a solutionā¦
But, first I want to test an ideaā¦
Because I know the volume traded per trade (I know lotSize)ā¦I can convert the commissions amout in pipsā¦and consider it when I move the Stop Loss the first time at BreakEven increasing the positive offset to cover the commission costs.
What do you think about this Idea?
P.S. : I have checked on the dukasCopy site that the average spread for GBP/USD : 0.94
What is your average spread on GBP/USD?
Because I think that the sum of commissions cost and spread cost on dukasCopy
is equal to spread cost for a Broker that offer fixed spread and no commissions costā¦so this not solve the main problem. But I am not sure of this.
Thank you.
Bye bye.
As I have already stated, I am in the process of writing up a PDF with all the parameter specifications and asked that you please be patient.
So, although I thank you for your contribution, unfortunately your PDF is going to cause confusion due to it being incomplete and having the wrong version number. So, in that light, I kindly and respectfully request that you remove your PDF attachment from your post and await for the official one please.
Many thanks and best regards!
The number of Pips that your commission represents in the case of GBP/USD and a USD Account Balance can be calculated as follows:
Pip Equivelant = Currency Price * Commission Rate * 2 Operations / 100
For example, if your GBP/USD Price is 1.62012 and your commission is $35 per million, then
Pip Equivalent = 1.62012 * 35 * 2 / 100 = 1.134084 ~ 1.2 pips (after ceiling adjustment)
If your average spread is 0.94 pips and commission is 1.2 pips, then total cost is 2.14 pips average.
So now you can compare to other brokers and see which is better!
EDIT: However, you can still compensate for this by increasing the Stop Size by the equivalent amount of spread and commission. That is what [I]Vijay[/I] does and I do the same as explained in several of my posts. By the way, I trade this strategy on my Live account and I am happy with the results so far. Obviously I do not use a stop size of 5 pips but rather a size that fits my environment with respect to spread and slippage as I am not charged commissions.
Thank you! I appreciated that!
Ok,
I would have sent it to you first by PM. but do not know how to use the PM in BabyPips. How do I PM you?
No need to send it to me, since as you remember I wrote the code, so I know what is there.
To PM, just click on the Name or Avatar of the user in question and then in the left column, click on āSend Private Messageā or on āSend Emailā, but remember that you may need sufficient posts to qualify for that ability.
I really appreciate your help
The number of Pips that your commission represents in the case of GBP/USD and a USD Account Balance can be calculated as follows:
Pip Equivelant = Currency Price * Commission Rate * 2 Operations [B]/ 100[/B]
For example, if your GBP/USD Price is 1.62012 and your commission is $35 per million, then
Pip Equivalent = 1.62012 * 35 * 2 / 100 = 1.134084 ~ 1.2 pips (after ceiling adjustment)If your average spread is 0.94 pips and commission is 1.2 pips, then total cost is 2.14 pips average.
sorry but I donāt understand (/100) 
these are my calculations :
Commissions for 1.000.000 : $35,00
number of commisions for each trade : 2
GBP/USD :1,62012
[B]Commissions Total cost for 1.000.000 Volume : $113,41[/B] (LIKE YOUā¦thank you for this)
Lot size for current trade : 0,15 (for example)
Lots : 15.000
[B]divisor to utilize : 1.000.000/15.000 = 66,67[/B]
[B]cost commissions in $ : 113,41/66,67 = 1,70 $[/B]
average spread : 0,94
commission : 1,70
[B]total cost in pips for current trade : 2,64 pips[/B]
So greater is the lotSize used higher are commissionsā¦
I hope the procedure is correct.
Thank you.
P.S. = If the procedure is correct I can post a little excel file for automatize calculation for all the users who use a Broker with variable spreads and commissions for trade.
OK Maybe I understand why you have used [B]/100[/B]ā¦ the lotsSize have to be calculated [B]after[/B] you have the amount of pips of spread+commission+stopLoss to risk and not beforeā¦ so you have estimate an average of 10.000 lots per trade for simplicity
Sorry, but that is incorrect. You have to think in terms of Contract Sizes and Pip Values. The ā100ā has nothing to do with percentage but rather the resultant value after factoring Contract Size and Pip Value for a Standard Lot of volume. Also remember that [I]Dukascopy[/I] is misrepresenting the āMinilotā value by a factor of 10 (scale of 0.1)
Here is the correct calculation in detail:
Contract Size = 100000 (Standard Lot Contract Size)
Pip Value = $10.00 (for Standard Lot of ???/USD and USD Account Balance)
Currency Price = 1.62012 (example for GBP/USD)
Value = Currency Price x Contract Size = $162012.00
Turnover = Value x 2 (open & close) = $324024.00
Commission Value = $35.00 ([I]Dukascopy[/I] value for small balance)
Commission Scale = $1000000.00 (Million $)
Commission Rate = Commission Value / Commission Scale = 0.000035
Commission per Trade = Turnover x Commission Rate = $11.34084
Commission in Pips = Commission per Trade / Pip Value = 1.134084 pips
Thus the resultant simplified calculation is as follows:
Commission in Pips = Currency Price * Commission Value * 2 / 100
[B]Commission in Pips = Currency Price * Commission Value / 50[/B]
Please note that the resultant equation does not factor in the volume (lots) of the order because we are working in terms of Pips and not money, so we do not need to worry about the volume in this calculation.
However, please note that this is an approximation, as we are using the same Currency Price for both the Open and Close of the Trade. To be exact, we would have to calculate separate commissions for the opening price and closing price, but the resulting difference from the above calculation is negligible. But if you wish, just use the average price between the opening and closing prices, in the calculation, for a better approximation.
Yesā¦ the procedure is perfectā¦thanks for the explanation of all the steps involvedā¦ Now everything is clear
Iām learning a lot from youā¦so thank you again.
this evening I do backtesting taking into account the commissions in the codeā¦later I post results
Bye bye.
An update has been made to Post #661. The attached archive in that post, now includes PDF documentation for the parameter settings and the new version of the EA which also automates the selection of the opening session hour.
Starting from today, Iāve put the Carninoās EA in demoā¦here the link:
PARMAR_cesa_demo System by cesaforex | Myfxbook
Before 15 sept 2014 all trades were done by initial Viaj EA.
Bye
Hello Cesa,
Can you tell me what your average spread has been on this account for GBP/USD so far? This is important in evaluating if the 5 pip stop is appropriate or not for your account.
According to the FXPrimus website, assuming that the Demo account you have is of the āVariable Spreadā type, then it seems that your average spread is probably around the 2.0 pips for GBP/USD. If that is the case, then your 5 pip stop may be borderline and may need to be increased a bit.
I suggest you leave it as is for this week, but watch it closely to see how the spread reacts during trades, and then increase the stop size slightly for next week based on your observations.
[B]EDIT: Please also inform us of what the parameter setting are, that you are using on the EA.[/B]
Regards,
Carnino
Hi to all,
I have worked in the previous days to add a better report to backtesting data that take into account the commissions cost that are fundamental in the calculation of the metricsā¦this is an example:
PERIOD : 2014-01-01 00:00:00 - 2014-09-01 00:00:00
CANDLE TYPE : DAILY BAR (GMT 00 and no NY CLOSE) Sunday No trade
Symbol : GBP/USD
STRATEGY : DayBreak.Trail
STOP LOSS : 5 pips
TRAILING STOP : 5 pips
BREAKEVEN OFFSET : 0.5 pips
MAX SPREAD ACCEPTED : 2pips
COMMISSION PER MILLION : 35$
OFFSET ON HIGH/LOW : 0pips
where :
UNIT = PIPS : are metrics calculated on PIPS.
UNIT = $ : are metrics calculated on money.
UNIT = PIPS_-COMMISSIONS : are metrics calculated on PIPS - Commissions.
UNIT = $-COMMISSIONS : are metrics calculated on money- Commissions.
so we are interested on the last 2 UNIT that are the net results.
I hope calculations are accurate this time :57:
I post also the complete report
risultati.zip - Speedy Share - upload your files here
In the next days I want to do backtesting with different Stop Loss and Trailing Step as suggested by Carnino and switch to NY Close Daily Candleā¦but for now itās comforting to think that the strategy also works on European candles (GMT 00 Daily close time)
Thanks to all.
Bye bye.
Hello Life100,
Since it seems that you can include attachments in your posts (the images), please do the same for your ZIP archives as well instead of using that third party āspeedy shareā alternative.
That way, the files will forever be stored by [I]BabyPips[/I] and be available in the future, while your third party might not do that.
If possible, do this for your most recent post by editing it and making the necessary changes.
Thanks and Regards,
Carnino
I would like to include zip archives in my posts
but it seems that I can only includes images or videos and not zip files.
sorry.
OK! I guess [I]BabyPips[/I] will only allow you to that once you have a higher post count!
I Carnino,
-
I used default parameters
-
Iām using an ECN account, so with spread and commision.
Now I canāt access to my VPS, but I will try to collect spread fluctuation and I will share result with you.
Do you have any suggestion about spread collector indicator?
thx
I suggest that you donāt blindly apply the default parameters without considering the effect your environment has!
On this thread I have repeatedly called attention to the fact that the stop size has to be adjusted depending on your spread, slippage and commission. In fact, if you have been following the [B]recent discussion going on with āLife100ā, it has all been about the commission and how to calculate its pip equivalent and how to adjust the stop size accordingly[/B].
My backtests have been for a reference fixed spread of 1.5 pips, but your case, as so many others, is not that ideal. You have to make the necessary adjustments and I have on many occasions even explained how to calculate the stop size based on the points mentioned. This applies to both manual and automatic trading. Also, I have on this very thread, supplied a link to my own code on MQL4 for a spread tracker for analysis of spread, on a post dedicated to challenging traders such as yourself, into answering the question of how spread can affect the stop size (see Post #614).
[B]Fellow traders! Please do your homework before using any EA.[/B] This is the very reason why EAs and Automated Trading Systems get such a bad reputation - not because they do not work, but because you do not make the effort to understanding the underlying principals and how to correctly adjust the parameters.
People, if you want to succeed in this business, you have to put in the work and the necessary self-discipline, just like you would in any other business. In fact, you probably have to put in much more effort than other endeavours if you want to make it.
Iāve been at this since 2011, and I know from experience how long it has taken me and how much work and learning I have had to put into this, to only now in 2014 to start making money. It is a long and difficult journey, so please do not take my words lightly. [B]PUT IN THE EFFORT![/B]