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Scalper EA during news, what do you do about the spread?

  • Post #1
  • Quote
  • First Post: Mar 23, 2008 4:44pm Mar 23, 2008 4:44pm
Hello,

I'm building a scalping EA, and one problem with letting the system run during market hours without interruption is the widened spread during news will kill me. What is one solution to this problem? Can you code the EA to not trade once spread is above X?

One problem with my system though is that it relies on SAR. So if I am in the middle of a trade, get SL'd, and then the news hits and moves price 20-40 pips away once trading settles down, then my system will be at a disadvantage.

Any idea what I could do?
Assuming you have the MQL4, you can indeed alter your EA to not trade when the spread widens above a certain point.

If your EA is simple a EA, that is one that does not linger in loops over long, the expression (Ask - Bid) / Point will evaluate to the number of pips in the spread. You can use a conditional statement of some sort with that expression to avoid the trade. However, if your EA does linger for long periods of time without returning from a start() call you will need to be sure to call RefreshRates() just before you use the spread calculation expression.
Actually I will be using tradestation since I need to be on an ECN; ie MB Trading. MT4 brokers don't really care for scalpers. This was the only forum I figured I could ask this question. Do you know if I'll be able to do something like this in ninjatrader?
Quoting permanentjaun
Hello,

I'm building a scalping EA, and one problem with letting the system run during market hours without interruption is the widened spread during news will kill me. What is one solution to this problem? Can you code the EA to not trade once spread is above X?

One problem with my system though is that it relies on SAR. So if I am in the middle of a trade, get SL'd, and then the news hits and moves price 20-40 pips away once trading settles down, then my system will be at a disadvantage.

Any idea what I could do?
Use this:
extern int MaxSpread = 8;
.......
double spread = MarketInfo(Symbol(),MODE_SPREAD);
....
if (spread >=MaxSpread) return(0);
Quoting forexman77
Use this:
extern int MaxSpread = 8;
.......
double spread = MarketInfo(Symbol(),MODE_SPREAD);
....
if (spread >=MaxSpread) return(0);

77....

would it matter where you place this code? Does it need to go before the conditional codes to buy or sell.....or should it go after?
Quoting 60minman
77....

would it matter where you place this code? Does it need to go before the conditional codes to buy or sell.....or should it go after?
Before. EA stoped looping, he is not pasing Sell or Buy.
MaxSpread = 8;
On ECN broker (5 digits) mean 0.8 pip
  • Post #7
  • Quote
  • Last Post: Edited at 4:50pm Aug 25, 2010 12:16am | Edited at 4:50pm
Can sombody add this maxspread into my code ???
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