I am testing my EA on EUR/JPY historical data with USD account. For each trade I calculate risk as PotentialLoss/AccountBalance(), where PotentialLoss = StopLossPips * TradeSizeLots * PipValue and PipValue = 0.01/CurrentRate (0.01 - pip increment for Yen based pairs). The problem is that PotentialLoss is calculated in Euros while my account balance is in USD. I can't properly calculate risk without converting Euros to USD. So for my EA to calculate risk correctly it has to access EUR/USD rate in that moment in history and this seems to be a issue for Strategy Tester. Is there any workaround for this?.
The other question is how Strategy Tester manages to calculate correct profit/loss values for my USD account? Or does it?
I have 2 installations for MT4 from two different brokers. I ran my EA on both and I am getting exactly the same trades executed over the same period of time but profit/loss numbers differ between the two.
Interestingly, one of these testers gives me the correct historical conversion rate to USD.
Can someone shed a light on how Strategy Tester does profit/loss calculation in such case and how reliable it is?
I can't properly calculate risk without converting Euros to USD.
Thanks. Eye opening...
Your links led me to more information I wasn't able to find otherwise.
What's DIR in your formula?
For testing purposes though I think it is better to set account currency to one of the pair's currencies to avoid "guessed" profit/loss numbers. In the end of the day I am interested to see EA performance as a percentage of initial deposit, no matter what is deposit currency.
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