Tick Value
- The Tick Value Issue
- Attached Indicators and action if you broker is on the Dark Side.
Could not find a suitable thread in the coding or other section so dumping here.
The title of the post will be found in a search for anyone looking to get to grips with this issue.
It also avoids a barrage of private coding requests.
No free coding is on offer - no commissioned coding is ever on offer - PM coding requests will be ignored/deleted.
I do not have time and this type of question after question while entertaining is time consuming -
https://www.forexfactory.com/thread/968501-partial-close-script
No free code source files are available as these are being packaged and sold on MetaQuotes Market.
MT4 and MQL4 is a setting sun however, for what its worth, here are the links to the posts.
I have my reservations about traders/investors writing any accurate detailed risk management code otherwise the Tick Value issue under discussion would not be the unknown it is .
However, when researching I've been extremely grateful to that poster who posted on a remote vexing issue.
The posts speak for themselves and further discusision is not required - nor do I have time. Research further and wider where the posts do not suffice. See discussions at MetaQuotes Code Base.
These posts address Tick Value discrepancies on broker platforms offered - at the time - by FTMO.
Though these brokers are no longer contracted to FTMO the issue is common to any broker hosting MT4.
The broker either has it right - or - the broker has it wrong.
FTMO reply
- Hi Phylo,
- Please be aware that the tick value is measured in the margin currency.
- You can see in the specification of the DAX.lmax_m that the Margin currency is EUR.
- The tick value is correctly specified as 1 since 1 tick movement results in 1 EUR P/L.
- Should you have any more concerns, feel free to contact us at [email protected] where we can provide an answer for you in a more timely manner.
- FTMO post of the above: https://www.forexfactory.com/thread/post/13043915#post13043915
Addressing FTMO reply
- Post Part 1 is rather high horse - a number of previous omitted posts addressing the issue had bought us to this point. Exasperating!
- FTMO, though highly professional - in this instance, off the mark. I'm merely maintaining the high standard.(my protection from litigation 😇)
- These comments are in no way an assessment on the integrity of FTMO.
- Charts and calculations are presented to indicate the fallacy of the FTMO's understanding and MT4 Tick Value discrepancies applicable to the respective brokers.
- These brokers are no longer contracted with FTMO and the Tick Value issue will apply to any broker providing the MT4 platform.
- To reiterate: The broker either has it right - or - the broker has it wrong. (not absolutely true because if the technical department has rounding errors the Tick Value will be almost but not quite correct and therefor deteriate the accuracy of calculations similarly. My experience is rounding errors usually fall away if the code calculation decimal numbers are all a least 5 digits)
1. Please be aware that the tick value is measured in the margin currency.
A1. No it it is not.
a) It is delineated and defined in margin currency and
b) it is 'measured' in deposit currency. (and this - sir - may seem semantics - but is the premise of your (and any advisor's) misunderstanding - you appear not to understand that tick value is 'measured' in deposit currency - not margin currency)
2. You can see in the specification of the DAX.lmax_m that the Margin currency is EUR.
B2. I am absolutely aware that DAX.lamax margin is delineated in EUR.
3. The tick value is correctly specified as 1 since 1 tick movement results in 1 EUR P/L.
A3. No the tick value is not correct. For while it is delineated as 1 EUR it has not been translated into the deposit currency which, in this case (my example) , is ....... USD ......as clearly stated.
If the deposit currency is in GBP the EUR delineated tick value requires translation into GBP. If the deposit currency, in this case (this example) of DAX30, is EUR the tick value is already translated to deposit currency and is FIXED at 1 (parity exchange rate). Edit comment: Actually - 'permanently' at parity because there is no exchange rate.
etc.,
Post Part 1 - charts and calculations:
https://www.forexfactory.com/thread/post/13046957#post13046957
Post Part 2 - charts and calculations:
https://www.forexfactory.com/thread/post/13046980#post13046980
If this was missed - it should be taken into consideration: -
https://www.forexfactory.com/thread/post/8896625#post8896625
Attached Indicators and action if you broker is on the Dark Side.
- Attached indicators to assist determining if broker Tick Value and Required Margin applicable to code is correct >> Lots x Points* x Tick Value = $amount. *Not pips - MQL4 calculates in points and is the most efficient way to calculate, especially for more complex calculations.
- Required Margin is another issue topic which I have not previously posted on - have a look here for starters - https://www.mql5.com/en/forum/267503.
- Testing on Demo of Live account makes for faster and more efficient comparisons against trade data - provided the demo is accurate data reflection of the live account.
- Note: The indicators do not indicate if the TV and RM are correct or incorrect - the indicators merely displays the chart TV and RM value which may or may not be correct.
- The user should know when exchange rate is floating or fixed at 1 (permanent parity - e.g. USD-USD) and be able to perform the required TV & TM calculations for comparison against trade data.
- What to do if your broker is on the dark side. Refer them this post.
- If your broker tells you it is a MetaQuotes-MetaTrader fault they are BSing you.
- The illustrated charts and calculations clearly prove that some brokers have got their technical act together and others slackers have not got their technical act together.
- If your broker is spinning yarns they are either slackers or cannot afford a competent technical team.
