Back Testing Not Respecting Spreads
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I specify a spread of zero I get the same results as when I have a spread of 100.
Specify meaning entered in the backtest engine settings (not hard coded in)?
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I mean that I click on the Spread check and enter the number of points. Not in the code. Please see attachment. Thanks for taking an interest GraHa. Much appreciated!
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Attached image 1 is with spread = 0, image 2 is with spread = 100
There is a difference of 9827 – 9175 over 669 trades.
It would appear there is some inbuilt limit on spread as a % of price or some absolute limit on spread value?
Why would you use / enter a spread of 100 anyway?
Why not use what the spread actually is … 0.41 currently??
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implied spread limit in the system of 0.974
The difference between above and 1 is maybe due to slippage?
I agree with all of the rest of your comment and I do the same re use worst case spread etc.
I tests I posted above were from on my CDF Platform … hence the spread I quoted of 0.41.
You must be testing on your SB Platform when you say spread 40 and even over 100? True price (currently $669) is multiplied by 100 to give point size = $1 on IG SB Platform (current Tesla price is $66,900).
I just bought 1 Tesla share on IG SB and straight off I am $87 down due to spread! 🙂
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The difference between above and 1 is maybe due to slippage?
I deviated in previous post … so spread of 1 on CFD would be same as 100 on IG SB Platform.
I’ll do another test later and let you know!
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