8/7 at the time of entry, we were already losing

FX Auto Trading, EA developersReiwa's Double-Eです。

Today,

this is about the idea that “you’re already losing at the point of entry.”

To state the conclusion first,

FX has spreads.

meaning,

you start with a negative P&L by the spread at the moment you enter.

For some accounts,

there are external fees,

where per trade you lose about 0.5 pips in fees.

Therefore, in my case,

to account for that and avoid spread-induced losses,

during development I set the spread to be wider.

And,

a little inside info from the developer,

if you build an EA with “zero spread” during development,

you can create an EA with unlimited upward potential.

Some developers

try to find the logical edge starting from zero spread,

but it’s not practical, so personally I think it’s pointless.

Moreover,

I develop USD/JPY and EUR/USD at about 1.5 pips,

and some say, “the actual account spread is 0.8 pips, so I develop at 0.8 pips and publish backtests.”

But then, in the morning spreads widen and slippage happens, does that mean you’ll win?

That becomes the discussion.

Even if someone says, “It’s fine because I set the spread filter to 1.0 pips,”

they would reduce the number of trades compared to backtests,

and if that happens,

you cannot rely on the backtest to gauge real-world performance,

and you end up in a situation where you’re using it without knowing if you can actually win,

which is basically gambling.

EA should not be used like that,

which is why I wrote this article.

So long!