TNA_EA Lab: The idea of making spreadsheets your ally
Table of Contents
① What is a Spread
② Characteristics of the Spread
③ The idea of making the spread your ally
④ Original Indicator “Spread Visibility-Kun”
What is the Spread
It is the difference between the buy rate and the sell rate
that exists at all times.
In other words,
the buy rate is greater than the sell rate
in magnitude.
Therefore, at the moment you buy,
and at the moment you sell, anyone would
inevitably incur a spread-related unrealized loss.
This cannot be avoided,
and it may be considered as a fee.
Moreover, in highly volatile markets,
the width of the spread widens.
About this spread,
how do you view it?
① Troublesome
② Annoying
③ If only the spread were fixed at a constant
then that would be nice
and so on
Spread Characteristics
A table summarizing the spread movements is as follows.
As shown below, during the release of employment data, when it swings wildly,
the spread widens tremendously.
Additionally, before 9:00 Japan time,
there are fewer market participants
and the spread tends to be wide.
Trades based on technical indicators
are fundamentally based on probability, so
they do not respond well to sudden irregularities
or markets with small populations.
Therefore,
on the contrary, consider using the spread as an indicator
to guide your decisions.
The spread itself serves as an indicator of whether the market
is stable and whether technical indicators work
or not.
If you seek trading efficiency,you should incorporate the spread as an indicator
into your strategy.
The Idea of Making the Spread Your Ally
was shaped into an EA
Original Self-Made EA「TNA_XAUUSD」.
Also, as a standalone indicator,
Original Indicator “Spread Visibility-Kun”is provided.
Original Indicator “Spread Visibility-Kun”
For the trading target, displays the size of the spread over time on a histogram in a sub-chart.
It also records the minimum spread.
With this indicator,
you can visualize the spread trend,
and by selecting trading times with stable, small spreads,
you can trade in a time frame that naturally has a higher likelihood of effective technical indicators.
The original indicator “Spread Visibility-Kun” can be introduced here.
