Regarding the "differences with the forward results" in EA
From EA users,
occasionally,
they say,
"The forward results are not the same as Gogojan's..."
(this is especially common among beginners)
Basically,
even if you use different brokers,
price data tends to move in almost the same way,
so,
[entry points, for example,for about 80% are similar]
-
This meansyou will almost get the same forward results.
This is the usual pattern.
However, depending on the operating environment and differences between brokers,
small differences inevitably appear,
and the accumulation of these small differences
causes the forward results to diverge to some extent.
That is reality.
And in this difference of forward results,
the most influential factor is, indeed, the spread difference.
The spread is
like a transaction fee charged per entry,
and the narrower it is, the better the trade results, naturally.
Also, in forward tests, typically
we measure forward using brokers with narrow spreads in Japan,
so,
if you use a broker with an equivalent spread in practice,
the results will be almost the same as Gogojan's forward.
However, in reality,
there are cases where one uses brokers with higher spreads,
and in such cases, you may hear that
"it does not match Gogojan's forward."
Why is this? It is because
we are using brokers with wider spreads,
when the spread is 1.0 pips, a +10 pip take-profit trade would be achieved,
but when the spread is 1.1 pips, it would become a -100 pip loss trade because the target is not reached by 0.1 pips,
and thus the final profit differs.
That is how the earnings differ.
"Even though it's only a 0.1 pip difference... is that possible?"
Some may think, but
as you run a large number of trades,
even a 0.1 pip spread difference
can become a big difference in reality.
There is actually a very simple way to verify this.
That is,
・Backtest with a spread of 1.0 pips
・Backtest with a spread of 1.1 pips
and compare the results of backtests under different spreads.
In the above comparison,
the spread differs by only 0.1 pips.
However, in reality,
you will notice that the backtest results differ.
(From around 2005 onward, differences of 100 pips or 500 pips appear.)
This is exactly the
situation described above,
where
with a spread of 1.0 pips, you get a +10 pip take-profit,but with a spread of 1.1 pips, you do not reach +0.1 pips and end up with -100 pips loss.
This is evidence of that cause.
This is extremely important when selecting a broker,
so please take it as a reference. m(_ _)m
(Of course, spreads are not the only factor; there are other service differences as well,
so it cannot be stated universally, but
please choose the best broker based on the total merit, including spread differences.) m(_ _)m
