Přejít k obsahu | Přejít k hlavnímu menu | Přejít k vyhledávání

Fixed Spread size, General understanding

1 replies

1 year ago #282061

Hi,

I have a question regarding spread in instruments/data Tab while creating and testing Strategies. For example Bitcoin from 2017 to 2023 went trough a Range from 1000 to 65000 USD. And same did spread at cfd brokers i would suppose. So if i take a fix spread of eg 1000pip it could fit todays spread value but would be to much für the data of 2017 and too little for future data in case BTC raises again to former highs. But basically it should be the same for all instruments especially Stocks and Indizes on long er time horizons. Whats the error here in my thoughts, for me it would make more sense if there would be an Option where the spread is dependent in % of the underlying?

1 year ago #282066

Hi,

the best here would be to set the average spread of the entire period. Currently there is not better way for markets like BTC unless you have tick data containing the real spread for the market

Viewing 1 replies (of 1 total)

Risk Disclosure:
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonial Disclosure:
Testimonials appearing on www.strategyquant.com may not be representative of the experience of other clients or customers and is not a guarantee of future performance or success.