The Ugly Truth of Forex (In)differences

What is the very first reason why you should never expect that you can simply buy an auto trading EA and that would produce money for you eternally, like they said it would?

The difference of the data among brokers.

Where is the difference coming from?

Server time difference

The image above shows the same iRSI(symbol,0,2,PRICE_MEDIAN,i) expression, yet the outcomes on the two different brokers are drastically different. White circles are only some high lights.

Since one broker is right on GMT +1 hour, their daily candles start at midnight, thus a week is made of exactly 5 candles.

The other broker is on GMT -1 hour, it opens 2 hours earlier, so there is a 2-hour long daily candle on Sunday and therefore the total number of candles in a week is 6.

Imagine that the automated trading routine utilizes RSI2 divergences as opening signals. The program was made with the Gray background broker – so for instance, on the first image, the last 2 white circles should result in opening positions. On yours, these events simply do not occur.

Conclusion: every value derived from daily candle groupings would be different, therefore you cannot use a different broker and expect the routine to perform the same way.

Every oscillator (not just a 2-sample size one) would end up showing different values at almost every reading. One may have the stochastic level below 18, the other at 35. One would be considered oversold while the other isn’t. I had the same routine opening a long on one account and a short on another because of such an uncertain divider.

When it comes to 4-hour candles, the differences are even more pronounced. One of these brokers started the current 4-hour print more than 3 hours ago, while the has only been under plotting for the last hour and change.

One shows a doji for the last 4-hour candle, the other – thanks to the different grouping – do not have this.

I probably don’t need to tell you in detail that a 3, 4, x sample high or low aren’t necessarily going be identical either.

Let’s only mention here vaguely that the brokers do not open and close at the same time.

If I write a scalper that cuts an EUR/USD position at 1-pip gain after reaching 4 pips in my favor (as a protection mechanism) and this would yield me 0.2-0.3 pip gains after commission and spread, while you have an 1.7 pip “fixed” spread at your broker, then the trade that gave me some profits lost you at least 0.7 pips.

The slippage values, the overnight swap, the commission are all different at every single broker.

If my broker allows for 0.2 pips slippage, then I can put out a pending order rather close, but your broker with the 2-pips slippage would deny placing the same order.

I hope you are beginning to get the sense of why trade copying cannot work either.

If my broker only cranks up the spread to 2-pips overnight, while yours pushes it beyond 4-pips, this can easily make the difference between receiving a stop out or not, or triggering a hedge position vs not.

Let’s only vaguely mention the margin calls that would be the outcome of different margin call percentage values despite of having the same leverage.

Let’s faintly mention other values such as maximum lot size, that are also unique to a broker.

So, how do you overcome all this? You can’t.

You can only develop and optimize for the broker you are trading with.

Your auto trading routine (EA) won’t behave the same way with any other broker, not even with different privileges when using the same broker.

People, you need to stop looking for substitutes and single pill fixes all solutions and invest in what I’ve been investing in: understanding how trading works – for real.