This may seem like a stupid question but if I'm testing using historical data using closing prices do I need to multiply all my trades by 3 pips and subtract that from any profit ?
Thanks
This may seem like a stupid question but if I'm testing using historical data using closing prices do I need to multiply all my trades by 3 pips and subtract that from any profit ?
Thanks
Yes, basically you will always pay the spread. One way of thinking about it is to imagine that you enter and exit at the same price on the historic data. In the real world doing this will cost you the spread.
