What is a good number for slippage?
Posted: Sun Jun 13, 2021 3:37 pm
I use between 0 and 5. On close order, on take profit and on stoploss. But Im not sure if this is excessive or not. I need your suggestions about this.
Hi Gu00hero,
Similar to spread, I don't believe if there is a specific value here that would necessarily simulate every broker. Slippage can vary depending on the kind of market and also your broker. Instead, what you should be doing with this value is varying it upwards in order to find a threshold where your EA is no longer profitable. From there, you have an idea of how tolerant your EA will be to these parameters when you put it live. If the strategy tests relatively well with small slippage increments, you can be more confident of it will be unaffected by these variables in a live environment. This would be especially revealing for high-frequency strategies that are often very sensitive to small changes in slippage (and spread).
Hope this helps.