Dislikedthank you very much Nick ! much obliged ....... the results appear to be quite encouraging especially since its over a 5 year period.
I was just wanting to ask you whether you were able to consider the spread in the back test, especially in the case of gj as its normally quite large.
thanks againIgnored
The way I view spread is as follows:-
The spread on my spread betting account is 8 pips for gbp/jpy so there are 4 pips either side of the 'target' buy/sell price.
So basically my orders are placed 4 pips early and closed 4 pips late. The spread would only be important when:-
1. My order is filled and price then reverses to stop me out without reaching the target order price (which is 4 pips away)
2. A filled order hits the profit target price but then reverses to be stopped out without hitting the bid/offer price for the progit to be filled (which is 4 pips away)
On these 2 occaisons losses would have occured in real trading but not in the back test.
These will be offset by the opposite happeneing with the stop loss price.
The occaisons above will have happened during the test but they will not be very often. For all other trades the backtest would be as per real trading.
I hope I've made this easy to understand, I beleive I am right although stand to be corrected.
Cheers
Nick