Fixed Spreads Vs Real Spreads

1. Problem Statement

Currently, Forex Tester Online (FTO) utilizes a single, fixed "real spread" model for backtesting. However, this model often fails to match the actual spreads provided by many brokers. This mismatch is a critical flaw because:

  • Inaccurate Strategy Validation: Strategies that perform well in FTO may fail in live trading due to significantly different spread costs .

  • Lack of Broker Representation: Traders often choose specific brokers for their spread structures. The current FTO model does not represent these variations, making it impossible to test a strategy under the specific cost conditions of a chosen broker.

2. Proposed Solution: Spread Type Selection

To address this, I request the introduction of a user-configurable "Spread Type" setting for each project. This feature would allow users to select between two primary modes:

Option A: Variable Spreads (Real-time Simulation)

  • Description: FTO would simulate spreads that fluctuate based on market conditions (e.g., time of day, news events). This would more closely mimic the dynamic environment of a live ECN/STP account.

  • Benefits:

    • Provides a more realistic backtesting environment.

    • Allows users to test the impact of spread widening during volatile periods.

Option B: Fixed Spreads (User-Defined)

  • Description: Users would be able to manually input a fixed spread value (in pips) for each currency pair or set a global average spread.

  • Benefits:

    • Allows users to replicate the exact spread conditions of their specific broker.

    • Provides a stable and predictable cost base for testing, which is useful for comparing the performance of strategies independent of spread variance.

    • Crucially, this resolves the "not matching many brokers" issue as users can input the exact values they see on their live accounts .

3. Implementation Recommendation

  • Project-Level Setting: This option should be accessible within the "Project Properties" or "Settings" menu, allowing users to save different spread configurations for different testing scenarios.

  • Spread Value Input: For the "Fixed Spreads" option, a simple input field for each pair or a global multiplier/adder to the base spread would be highly effective.

4. Conclusion

Adding this feature would significantly enhance the platform's utility, making it a more versatile and accurate tool for traders who rely on specific broker conditions for their strategies. It directly addresses the core problem that the current "real spreads are not matching many brokers and not letting any strategy to be properly tested."

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Status

In Review

Board

πŸ’‘ Feature Request

Date

26 days ago

Author

Syed Sajjad Hussain Shah

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