Bid/Ask Spread Analysis - futures io
futures io



Bid/Ask Spread Analysis


Discussion in Platforms and Indicators

Updated
    1. trending_up 752 views
    2. thumb_up 2 thanks given
    3. group 2 followers
    1. forum 1 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Bid/Ask Spread Analysis

(login for full post details)
  #1 (permalink)
wrcdba
Cheadle
 
 
Posts: 1 since Mar 2019
Thanks: 0 given, 1 received

I have learnt that the bid/ask spread is one of the most important variables that new retail traders need to consider.

When I was a newbie trader I started off using 5 pip S/l and 10 pip T/P for a 2:1 risk/reward ratio, (as I suspect many new traders do). I wasn't very successful. So I did a deep analysis of the EURUSD M1 chart with a reliable Zig Zag indicator. I set it to 5 pips as the minimum leg size, which for me signified the kind of retracement I could deal with.

The results seem to suggest that most small swings were around 7 pips and the 10 pip legs were relatively rare in comparison. So, I started using a 10 pip stop loss and left the take profit open, so I could monitor the trade closely and decide when to get out if the trade had already hit a 7 pip loss or profit.

This resulted in an improvement, but still left me short of a profit. It was only then that I noticed the high bid/ask spreads I was trading against with that broker, so of course looked for a better broker.

Now, if you use MT5 you can download a free indicator, "Bid/Ask spread analysis in MetaTrader 5" in MQL5 Articles, which reports the true recent bid/ask values, not just the spread your broker declares it to be. It should be very informative for established as well as new traders.

Reply With Quote
The following 2 users say Thank You to wrcdba for this post:

Can you help answer these questions
from other members on futures io?
Order cumulation
TradeStation
What is your favorite indicator for algotrading ?
EasyLanguage Programming
Can anyone help convert this pine script to EasyLanguage?
EasyLanguage Programming
Bookmap replay files
Platforms and Indicators
Looking for combined bar type (UniRenko with HeikinAshi) NT8
NinjaTrader
 
 
(login for full post details)
  #2 (permalink)
JPStructure
Paris, France
 
 
Posts: 3 since Jul 2021
Thanks: 0 given, 1 received

the spread between the Best Ask and the Best Bid on the big Index are meaningless for me
I'm trying more to analyze the volume traded and (executed) on the Bid or the Ask on the last 3 last bars

Reply With Quote


futures io Trading Community Platforms and Indicators > [MetaTrader]    Bid/Ask Spread Analysis


Last Updated on September 13, 2021


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts