Building strategy vs broker conditions.

In this publication, I want to introduce you to a very often overlooked aspect, which is building a trading strategy for the broker's trading conditions.

It is commonly believed that the developed strategy is suitable for trading with any broker regardless of the trading conditions. I decided to conduct tests in this area and the results are presented below. I have built strategies for the broker with the trading conditions as below:

Average Spread 0.2
UTC + 2 time zone with DST (UTC + 3)
Type of pending orders buy stop, sell stop
The minimum distance of the order from the price is 0
Initial capital $10,000
Order size 0.1

Results

I tested the same strategies with changed trading conditions

Average Spread 1
UTC time zone without DST
Type of pending orders buy stop, sell stop
The minimum distance of the order from the price is 4 pips
Initial capital $10,000
Order size 0.1

Results

Conclusions

1. As you can see, the strategy performs worse, although only the time zone and spread have changed.
2. Choosing a broker and building a strategy for specific trading conditions is a very important factor that can decide about your success or failure on the currency market.
   
   Not every strategy will react to change this way, but it is worth being prepared, especially when you have been working on building a strategy for a long time.

A few tips from me

1. If you are changing a broker, be sure to check the strategies how it will handle the new conditions, even if the new broker has similar trading conditions to the current one.
2. Many brokers have servers in UTC + 2-time zone with DST (UTC + 3), low spreads, and zero or minimum pending order distance from price (if you use this type of order in trading). So consider building a strategy for such trading conditions, so that you will be able to change your broker later.

 

[TradeWizards]

You have a good working method and the past data shows the same situation
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