Easy spread settings difference

EA developer Reiwa's double-E is here.

When I was conducting backtests during EA development,

there was a notion of doing USDJPY and EURUSD at 1.5 pips,

Occasionally in backtests for USDJPY or EURUSD,

you may see a spread of 5 (0.5 pips).

1.5 pips means a difference of 1.0 pips.

In simple terms
If the number of trades is 1000 and the spread setting is off by 1.0 pips
you are differing by 1000 pips due to multiplication.
If this is 10 years, it would be 1000 pips difference; in one year that’s 100 pips.

0.1 lots for 100 pips is 10,000 yen. 1000 pips is 100,000 yen.

As the number of trades increases to 1000, 2000, …

the gap widens more and more.

If a backtest at 1.5 pips was excellent, making it 0.5 pips would be even better, but

if something that was excellent at 0.5 pips becomes 1.5 pips, that would be tough, right?

Of course, both the Profit Factor and the Recovery Factor would change drastically.

That was a simple talk today! See you again!

━━━━━━━━━━━━━━━

[Reiwa no Double-E A listing]

https://www.gogojungle.co.jp/users/112481/products

━━━━━━━━━━━━━━━

[Reiwa no Double-E serialized articles]

■EA Beginner Course

https://www.gogojungle.co.jp/finance/navi/series/1700

■No Sugarcoating! Gogojungle Problem Posing!

https://www.gogojungle.co.jp/finance/navi/series/1701

■ Double-E FX Anecdotes

https://www.gogojungle.co.jp/finance/navi/series/610

━━━━━━━━━━━━━━━

[Reiwa no Double-E's Beliefs]

Develop EA with a straightforward approach,

and gain the love of more people,

maintain a long-lasting WIN-WIN relationship,

aiming to revitalize the EA market and improve literacy.

━━━━━━━━━━━━━━━