collapse

Author Topic: How do I know if an EA would work well on a broker's platform  (Read 714 times)

Offline peterowode

  • Jr. Member
  • **
  • Posts: 83
    • MyTopExchange
How do I know if an EA would work well on a broker's platform
« on: December 09, 2012, 10:34:14 AM »
I have been bothering myself with the reason while forex EAs shows different performance and results on different brokers platform.
I feel these results should be almost similar with different brokers.
Does it have to do with the connection speed, spread, slippage or requotes

All i want to know now is how do I know an EA would perform well with a particular broker, apart from testing it with the broker.
InstaForex Nigeria, buy/sell Bitcoin, Neteller, Perfect Money at www.mytopexchange.com

Offline geektrader

  • Sr. Member
  • ****
  • Posts: 758
Re: How do I know if an EA would work well on a broker's platform
« Reply #1 on: December 09, 2012, 03:35:10 PM »
No other way than to test it.

The differences occur because of many reasons. Forex is an over the counter market, there is no central price feed. So all price feeds on each broker are slightly different. As an example: while the EURUSD might go down to 1.30000 on one broker, it might, at the same time, only go down to 1.30010 on another broker. Thats only a 1 pip difference, but because of that you might already miss an entry on the second broker since the EA would have only triggered an order if 1.30000 was reached. And the indicators / price action in EA always wants to get in at a exact price, so there are even huge differences even for long term strategies, not just for scalpers.

Then the same might happen for the TakeProfit or StopLoss for example. Those are fixed values and if the price for both was not exactly reached because one broker had a different high / low than the other broker of just a few pips difference, the EA might hit TP / SL on one broker, but not on the other, so the trade stays open on one broker, while it was closed at the other broker.

More comes into the game if you take into account the spread which is also vastly different between each broker. Same for slippage and execution times. Say the feeds are exactly identically between brokers, but you get slipped on one broker. Then you have the same problem, the TP and SL (since most of the time they are set after opening the trade and in relation to the real entry price you got), are now different on both brokers. So they might get hit on the one broker, but not on the other.

There are many many factors to take into account and hence each EA will always trade different at each broker and that applies also for long term EAs since even those depend on an indicator or price action which needs an exact distance or value to be reached before entering the trade, so even a 1 pip difference between a broker can make a trade suceeed or fail. You can easily see that when looking at RobinVOL EA in this forum. Fmonera has done everything possible so that it trades as much as the same on each broker, still in the live results thread you see the results are pretty different on each broker, because of the above reasons. Since even that EA, while taking every trade, in the end also depends on having the exact price on the feed that it needs to open or close the order, and if that is not reached, then trades will go different on each broker.

So your only option is to test the EA on as many brokers as you can. Of course choosing a good broker is a good starting point. See the "Brokers" section here in the Forum for that.

Good luck, youll need it in this difficult game to make some bucks.

 

browse forum