Hi all,
I have a trading method that uses bollinger bands as a stop, I need to compansate for the spread as on MT4 there is only bid price candles for the calculations.
Here is an example of what I am talking about:
Bid price 1.5000 Ask price 1.5001
Enter long @ 1.5001.
Stop would be 1 standard devation below say @ 1.4900.
Enter short @ 1.5000.
Stop would be 1 standard devation above say @ 1.5010.
But beacuse the standard devation is caculated from the bid price MA one of these would result in a greater lose than the other, I need to compenaste the spread in so that the lose would be the same. So my question is do I need to compansate my stop for both the bid and ask or just the ask price.
Thanks in advance.
I have a trading method that uses bollinger bands as a stop, I need to compansate for the spread as on MT4 there is only bid price candles for the calculations.
Here is an example of what I am talking about:
Bid price 1.5000 Ask price 1.5001
Enter long @ 1.5001.
Stop would be 1 standard devation below say @ 1.4900.
Enter short @ 1.5000.
Stop would be 1 standard devation above say @ 1.5010.
But beacuse the standard devation is caculated from the bid price MA one of these would result in a greater lose than the other, I need to compenaste the spread in so that the lose would be the same. So my question is do I need to compansate my stop for both the bid and ask or just the ask price.
Thanks in advance.
