Question-distance from price

Hi,

 

i found out min distance from price can afford results.

 

could anyone explain me (and others) what exactly does it mean, if it depends on broker or on strategy settings, how it works exactly etc.?

MAINLY, is it part of source code?

 

 

Thank you very much.

 

Patrick

Are you referring to Stops and Limits?  If yes: Basically, the broker will not allow a stop or limit order to be placed unless it is x pips away from the current Bid/Ask.  This makes it easier for them because it reduces the risk of your Stop/Limit being hit before they even get the order ‘placed’.  Also, this is not really needed unless you are scalping and brokers in the past have made it clear they don’t like scalpers (and some even ban scalping activity).  But I have seen more brokers advertise that they allow scalping..

 

Another thread on this forum, someone stated that this varies per broker and some brokers do not have this requirement.  My broker has a 3 pip requirement.

 

-Stearno

Ok, i will explain the question deeper. 

 

Most of non DD brokers have distance 0 (or 2) for stop and limit orders.

 

In SQ there is option to choose min dostance from price when building/retesting the strategies.

 

Is the min distance from price, if i set it when testing/building the strategy, part of MQ4 code?

 

Or i can test whatever (distance 0, 2 or 5) but it will be used my broker ditance, when i am trading?

ok fastest way was to find out this by myself. 

 

min distance from price is part of the strategy. if you set 5 pips and your broker allows you to use 2 pips, it will be used 5 pips anyway because its a part of strategy settings.

 

sometimes it can afford the result of strategy a lot, so be careful that you will use same strategy setting when you are creating MQ4 file.

 

Patrick