#### Topic: Swap rates

Hello!
A little question regarding the swap rates. The values we should enter are exactly those provided in FST? In terms of backtesting, which margin should we give? Any advice?
Thanks
Nuno

#### Re: Swap rates

Also, FSB seems to work contrarily to FXCM. FXCM says:

If the interest rate on the currency you bought is higher than the interest rate of the currency you sold, then you will earn rollover (positive roll). If the interest rate on the currency you bought is lower than the interest rate on the currency you sold, then you will pay rollover (negative roll).

However, if you leave your mouse over the swap for long position box in FSB (instrument properties), it says "a positive value decreases your profit".

How is that then? Shall I just enter in FSB the symmetric of values provided by FXCM?

Thanks
Nuno

#### Re: Swap rates

then you will earn rollover (positive roll)

Do you believe this?
Never mind. Set the values you see in FST and it will be fine. FSB will calculate it properly.

Swap matters for long therm positions, such you keep for months. FSB / FST works better for intraday trading or for medium therms - days or one - two weeks.

If you want to make the backtest more reliable, set several points of slippage.

#### Re: Swap rates

Popov wrote:

then you will earn rollover (positive roll)

Do you believe this?
Never mind. Set the values you see in FST and it will be fine. FSB will calculate it properly.

Swap matters for long therm positions, such you keep for months. FSB / FST works better for intraday trading or for medium therms - days or one - two weeks.

If you want to make the backtest more reliable, set several points of slippage.

Thanks. Still I don't get what's the difference for the signal difference between FST/FSB and FXCM. For long positions they seem to contradict each other. If someone can explain that would be nice

#### Re: Swap rates

Current Swap numbers fro EURUSD of FXCM are
Swap long:  0.68
Swap short: -1.41

I think these numbers are in Percent (but I'm not 100% sure because it's not written in Market Info coming from MT4).

Formulas for calculation of Swaps in FSB are:

``````if (SwapType == Points)
{
swapLongPips = SwapLong;
swapShortPips = SwapShort;
}
else if (SwapType == Percents)
{
swapLongPips  = (Close[bar - 1]/Point)*(0.01*SwapLong/365);
swapShortPips = (Close[bar - 1]/Point)*(0.01*SwapShort/365);
}
else if (SwapType == Money)
{
swapLongPips = SwapLong/(Point*LotSize);
swapShortPips = SwapShort/(Point*LotSize);
}``````

Later FSB corrects position price with the swap taking into account the count of days rollover.

``````if (PosDir == Long)
{
Rollover = PosLots*days*swapLongPips;
}
else
{
Rollover = -PosLots*days*swapShortPips;
}``````

As you see if Long swap is positive, it adds to the rollover charge.
When Short swap is negative, it adds to rollover charge.

So in our case, we lose from long position rollover as well as from short position rollover.

We can eventually gain money from rollover in a case where Long Swap is negative and Short slap is positive. But this is not our case.

That's why FSB writes that we lose money from rollover.

However, FSB will gain money if you set negative Long swap. It's up to you.

#### Re: Swap rates

Thanks a lot Popov.
But then somethins must not be right because in tradestation the values I have, in EUR, are:

Roll S: 0,01 USD / lot.day
Roll B: -0,03 USD / lot.day

In FXCM, positive always means that you are credited. So this is in contradiction with the numbers presented by FST, even if they are (as they must be) in %. You say this is not so important, but in my view it is, because even short term positions will have rollover provided they stay open after 17h EST. If you have a different position every day that stays open for the following day, actually you pay the same rollover as if you had a longer term position.

Cheers,
Nuno

#### Re: Swap rates

FST reads data from the broker. You cannot change them.
If you set the same data in FSB, it will calculate swap correctly.

FSB allows you to set swap type: Percent, Money or Points. If you works via FXCM MT4, you have to set percents. If you want to use TradeStation params, set Money.

In both cases FSB will calculate the swaps properly.

I cannot see a problem.

If you have a different position every day that stays open for the following day, actually you pay the same rollover as if you had a longer term position.

It is correct!!

#### Re: Swap rates

The problem is in the short position. According to FST I would lose in rollover (-1,41%), but according to tradestation I would earn rollover (0,01 USD / lot.day).

#### Re: Swap rates

I'm not sure. Negative number for short position means you loose this amount or percent. Both FXCM and TradeStation numbers are negative.

However I don't see what is the connection with FSB and FST.

#### Re: Swap rates

Popov wrote:

I'm not sure. Negative number for short position means you loose this amount or percent. Both FXCM and TradeStation numbers are negative.

However I don't see what is the connection with FSB and FST.

But I just told you that the tradestation number is positive, meaning that I earn money. The connection with FST is that FST is giving a value different from that provided by FXCM tradestation: FST says I lose money in rollover for short positions and FXCM says I make money! How is that??

#### Re: Swap rates

Search MT4 forum how you can check swaps in MT4. If they are different from that what FST shows, we'll have a problem, but the chance for such an error is almost zero.

Better ask FXCM why they give different swaps for MT4 and TradeStation.

This question is not related to FST in any way.

#### Re: Swap rates

Thanks, will do so.

#### Re: Swap rates

So I had a chat with a FXCM assistant who told me that swap rates mentioned in MT4 are not correct! Those of TradeStation are! Moreover he told me that's due to the design of the platform.

This is indeed strange as I've never seen anywhere, but for precaution I'll start using the values presented by TradeStation. It's possible that many users are using the wrong parameters, causing them to obtain incorrect backtest reports.

#### Re: Swap rates

My advise is to use MT4 swaps. These swaps are set by FXCM in the platform and you are charged according to it. If you trade via MT4 you have to use its settings. This will ensure close backtest and real results.

Moreover he told me that's due to the design of the platform.

Sure. They cannot reduce swaps. MT4 will crash

#### Re: Swap rates

Popov wrote:

Moreover he told me that's due to the design of the platform.

Sure. They cannot reduce swaps. MT4 will crash

Amen to that!

#### Re: Swap rates

Well it's very easy to check, next week I'll open some demo positions and see how much I get or how much I'm charged. I'll post the results.

#### Re: Swap rates

was this ever resolved? i am also confused by the swap in FSB. the popup descriptions (hover over the value fields) are not clear and misleading. a positive value should increase your profit, not decrease.

#### Re: Swap rates

was this ever resolved? i am also confused by the swap in FSB. the popup descriptions (hover over the value fields) are not clear and misleading. a positive value should increase your profit, not decrease.

I use what is entered in Metatrader and a liberal slippage, have not seen great problems.

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

#### Re: Swap rates

Maybe this won't influence the results that much if you are "liberal" as blaiserboy, but I've noticed that the values provided by MT4 are wrong - at least with my broker, oanda. In some cases I receive money and MT4 says I should pay. And I confirm that I really receive money (eg when buying oil or SP500) because I can see the credit in my account. So I use the values provided by oanda and then adjust them a bit to account for normal variations.

#### Re: Swap rates

Once the Pro edition is ready, I am sure Popov will address any bugs therein, his focus is on the new version until it is ready and he will be interested in correcting any flaws.

I use extra slippage to allow for spikes and provide a margin of safety, my experience has been that we have to make allowances for changes in the market.

I also use 5 pip spread for each instrument and 10 pips for geppy.

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....