Possibility of open order at open price with EA

Keith Watford 2021.05.27 05:59 #1

samaudri150220:
Hello guys,

I would like to know regarding the possibility of this, I have seen some EAs that could open a buy order exactly at the OPEN price of the next candle stick, as we all know that forex chart is formed by bid price, not the ask price.

Is it possible?

Thanks in advance.

If it happens, then it is just a coincidence.

Nobody knows at what price the next bar will open at, they would need to be able to see into the future to do that.

samaudri150220 2021.05.27 06:16 #2

Keith Watford:

If it happens, then it is just a coincidence.

Nobody knows at what price the next bar will open at, they would need to be able to see into the future to do that.

Let’s say that there’s a logic such a “buy at any price on the next candle stick”. Again, the chart is formed by bid price. But, how could the EA buy it at the open price on the next candle stick, which is a bid price.. The buy order should be in ask price, right? Please correct me if i’m wrong.

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Keith Watford 2021.05.27 06:28 #3

samaudri150220:
Let’s say that there’s a logic such a “buy at any price on the next candle stick”. Again, the chart is formed by bid price. But, how could the EA buy it at the open price on the next candle stick, which is a bid price.. The buy order should be in ask price, right? Please correct me if i’m wrong.

Any buy order will be opened at Ask, but due to slippage it is possible that the Ask price may change to be equal to the previous bid price, but it will still be the ask price.

As i have already said, if a buy order is opened at what was the bid price, it is just a coincidence.

Of course it is possible that an EA will note the bid price and then open a buy if the ask price falls so it is equal to the opening bid price.

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samaudri150220 2021.05.27 06:59 #4

Keith Watford:

Any buy order will be opened at Ask, but due to slippage it is possible that the Ask price may change to be equal to the previous bid price, but it will still be the ask price.

As i have already said, if a buy order is opened at what was the bid price, it is just a coincidence.

Of course it is possible that an EA will note the bid price and then open a buy if the ask price falls so it is equal to the opening bid price.

Roger that. Thanks so much for your answer mate, really appreciate.

One more thing if you don’t mind, based on the historical data, this happened every time the EA made an order. And if I double-checked the order time, the order was executed exactly at the very beginning open price of the new candle, even if the candle has no wick or just say marubozu candle (it means no time to wait the bid price fall first then buy it). Is it normal mate?

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Keith Watford 2021.05.27 07:15 #5

samaudri150220:
Roger that. Thanks so much for your answer mate, really appreciate.

One more thing if you don’t mind, based on the historical data, this happened every time the EA made an order. And if I double-checked the order time, the order was executed exactly at the very beginning open price of the new candle, even if the candle has no wick or just say marubozu candle (it means no time to wait the bid price fall first then buy it). Is it normal mate?

If that is happening, then I can only believe that you are talking about results in the strategy tester and you have a zero spread (if that is possible, never tried) or maybe the broker offers no spread but larger commissions.

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samaudri150220 2021.05.27 07:20 #6

Keith Watford:

If that is happening, then I can only believe that you are talking about results in the strategy tester and you have a zero spread (if that is possible, never tried) or maybe the broker offers no spread but larger commissions.

That sounds make sense to me. I think you’re correct. Thanks mate.

Fernando Carreiro 2021.05.27 09:28 #7

samaudri150220: That sounds make sense to me. I think you’re correct. Thanks mate.

There is one more possibility, and that is if you have a Zero Spread account, where they charge a Commission instead of a spread. I have one such an account, so this is not hearsay, but fact. I don't use this account that much as the commission is higher than a normal spread, but I do use it for one of my EAs due to a very specific need. For this kind of Zero Spread account (with Commission), the Bid and Ask are always the same.

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samaudri150220 2021.05.27 13:35 #8

Fernando Carreiro:

There is one more possibility, and that is if you have a Zero Spread account, where they charge a Commission instead of a spread. I have one such an account, so this is not heresy, but fact. I don't use this account that much as the commission is higher than a normal spread, but I do use it for one of my EAs due to a very specific need. For this kind of Zero Spread account (with Commission), the Bid and Ask are always the same.

Thank you so much for the information Fernando. I also believe so.