From f2b5a324a74145ad78305acfc41a0d62aabf4812 Mon Sep 17 00:00:00 2001 From: Julian Molina Date: Sat, 24 Aug 2019 14:03:05 +0200 Subject: [PATCH] Update README.md --- README.md | 22 ++++++++++++++++++++++ 1 file changed, 22 insertions(+) diff --git a/README.md b/README.md index 725a104ec..5fadbdcd6 100644 --- a/README.md +++ b/README.md @@ -626,6 +626,28 @@ A simulation is a combined backtesting plus paper trading operation, meaning tha In order to run a first simulation, you need to have a strategy in working order, as described in the [Starting a Strategy from Scratch](https://github.com/Superalgos/DesktopApp/blob/master/README.md#starting-a-strategy-from-scratch) section. +## Exchange Fees + +Fees are a crucial part of the game. A strategy may work like a charm when you leave fees out of the equation but would lead you to bankruptcy in a live trading situation. + +Simulations take fees into account when the following piece of code is present and properly configured in your *Base Asset* parameters: + +``` +"feeStructure": { +"maker": 0.15, +"taker": 0.25 +} +``` + +The above configuration corresponds to standard Poloniex maker and taker fees. Remember, for the time being, all orders placed by the Execution Engine are *market orders*, thus, the *taker* fee applies in all cases. + +To illustrate how fees affect your bottom line, take a look at the image below. + +![Trading-Simulation-Fees-Fails](https://user-images.githubusercontent.com/13994516/63636432-8d8cdf80-c66f-11e9-86a3-480d157d8126.gif) +

+ +The trade hits the take profit target above the Position Rate level, however, due to fees, the trade has a negative 0.32% ROI. + ## Simulation Datetime Range There are two ways to define the datetime in which a simulation starts. However, in both cases, the simulation never ends, and keeps running until the present time.