Topic: Realistic SL in backtesting after (weekend) gap
I just saw that you´ve been mentioning this in the latest EA Studio update:
"- Fixed close on Take Profit in a gap to be at current Open."
Which is the right way to do it after a gap indeed. But how about the SL? After a weekend gap, it will also be executed at the next open price, even if it was surpassed by whatever amount of pips. E.g., say we have a SL of 50 pips, the trade carries on during the weekend, then the market opens 100 pips below our set SL. The trade would be closed at a loss of 150 pips instead of 50 pips. Does EA Studio simulate that correctly yet? It doesn´t look like to me, but it would be the correct way to simulate this during backtesting because exactly this happens in real trading.
Thank you :-)