The broker report that shows all your trading costs, and your broker performance on one page.
Why is broker cost so important?
Broker cost easily can be more than your profit. If you are able to decrease your broker cost, then you increased your profit without changing anything on your strategy. Read more >>>
1. The header – indicates the most important data:
Profit Without Broker Cost: This would be your profit if the spread were 0, and there were no slippage and swap Now, since you need to pay the broker’s costs, you never receive this as income, you only get a part of it.
Broker Cost: This is what your broker earns while you are trading. (SPREAD + SLIPPAGE + SWAP)
Realized Profit, is what you really get, and this kind of profit is indicated by your trading terminal.
The difference between the Profit Without Borker Cost and Realized Profit is the Broker Cost.
2. The chart section – displays your detailed profits and costs:
3. Spread Info Panel
Forex Broker Stars system calculates the average spread in the latest 50 ticks. It is like a Moving Average of the spread.
When a position is become closed the system checks the spread by comparing it to the average.
This comparison can has two results: The spread was above the average, or below the average.
Normally this two values should be almost equal.
If you see that most of the time, the spread was above the average, that could means you closed your position during news announcements, or your broker likes to have a little extra profit.
If you closed most of your positions below average then your broker gave you better prices then it should, or you know when to close the positions.
As you can see our system indicates the positions closed with extreme high or extreme low spreads too.
With a good broker the extreme values should be much more less than average values, and extreme high and extreme low should be almost equal.
If the count of extreme high is very high that could represent a possible spread enlargement!
If the count of extreme low is very high, that could mean a broker failure what is very good for you!
When spread is extreme high / extreme low?
Trade Guard System detects not just average but the deviation of the spread. Extreme high is the spread when it is greater than average plus the deviation. Extreme low is when it is less then average minus the deviation. In “forex language” it is like Bollinger Bands of the spread. If your spread is above the upper band, it is extreme high, when it is below the lower bands it is extreme low.
Spread reliability index
Spread reliability index can help you to compare different broker companies. This index is calculated by or system, and its range goes from 0% to 200%.
It gives 0% when your broker is completely swindler: It always closed your position on a worse spread than it should, and most of them was in the extreme high zone.
100% is the normal. Your broker is reliable. The count of closed above and closed below average is equal. It may closed some position in the extreme zone but it is not significant.
200% is when your broker gives you better spreads than it should. Your broker is a complete fool, or it has some technical failure what is very good for you!
4. Slippage Info
Forex Broker Stars Trade Guard system detects slippages when a position is closed. The slippage could be useful or harmful to you, depending on its type and direction.
On the Overall slippage info panel, you can see your cumulate report. The count of the flawless trades plus the count of the trades closed with slippage is equal with the count of your total trades.
Slippage count gives you detailed information, about positive and negative effects of the slippage.
Trading Quality index could be helpful when you compare broker companies, because it indicates the performance with one number.
Forex Broker Stars prefers accurate broker companies. As a result, positive and negative faults both decrease the broker reliability index. If a company gives good trading conditions like low spread and high hourly tick number then the count of the manual slippage could be higher, but even if so, the count of TP and SL slippage needs to stay low. We suggest to check not just slippage count but slippage costs too.
What is Slippage?
Price exceeds the stop-loss or take-profit level, but the position does not get to be closed.
Price does not reach the stop-loss or take profit level, but the position gets to be closed.
Position gets closed manually (not by a market placed stop-loss), at a price other than the latest price displayed on the terminal.
THE DETAILED BROKER COSTS REPORT
1. The header
It is the same as in the Aggregate Broker Report. More >>>
2. Report Section
In this section you can see the same data as in the Aggregate Report, but they are split by the traded instruments.
1. CURRENCY NAME: Name of the instrument regarding to the broker.
2. REAL SPREAD: is not just average spread. It is average spread plus average slippage, inoder to have a better base to compare different companies.
3. LOT: Total traded lot, on the given instrument in the measured time period.
4. PROFIT WITHOUT BROKER COST: is the same as in the aggregate report but it is only for the given instrument.
5. Broker cost is the same as in the aggregate report but it is only for the given instrument.
6. REALIZED PROFIT: is the same as in the aggregate report but it is only for the given instrument.
7. $/LOT: The cost of the trading of 1 lot. Since it is in the Base Currency of the account what is not always USD you can see very high or low values.
8. AVG TARGET POINTS: Your average target distance in points.
How to calculate AVG Target Points?
Let’s suppose you opened two positions with the same lot size. You closed your first position after -40 points of loss, but you win +120 points with your second. Then your total profit is 120-40= 80 points. Because you opened 2 positions you win 80 / 2 = 40 points in average, therfore your AVG Target Point is 40.
In this example we opened both of the position with the same lot size for the better understanding. Our system weights each trades with its own lot quantity, so if the sizes had not been equal, it would give different result.
What AVG Traget Points is used for?
It is useful to compare your AVG Target Points to the Real Spread. If the spread is higher that means your broker earned more with the transactions than you.
Moreover you can easily calculate the growth of your profit, if you choose a broker with lower spread.
Let’s say you have a broker with a real spread of 22 points, while your AVG Target Point was 20 point. You choose a new provider with a spread of 17 points. Now you can increase your AVG Target Point to 25 points, and you will keep your win/loss ratio on the original level!
That means you increased your profit with 25% whithout cahngeing anything on your strategy!
9. SPR. REL. INDEX: Spread Reliability Index is the same as in the aggregate report but it is only for the given instrument.
10. TRAD. QUAL. INDEX: Trade Quality Index is the same as in the aggregate report but it is only for the given instrument.
11. DIGITS: Numbers after the decimal separator on the given instrument.
Value of the EURUSD are mostly in a format like this: 1.12345. In this case the digits equals 5. A few brokers have 4 digits EURUSD which means 1.1234 indication of the price..
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