Backtesting my scalping system shows profitability with Pepperstone’s commission structure, but I want to test using Oanda with GlobeGain rebates. How do experienced traders adjust historical testing for cashback? Does anyone use spread rebate data to offset commission assumptions in their testing frameworks?
Export rebate tiers. Add as negative cost.
Four-step adjustment process:
- Download Oanda’s 3-year spread history
- Apply GlobeGain’s rebate curve (scales with monthly volume)
- Convert spread+commission costs to net pip value
- Modify strategy triggers where spread > 1.8x EMA
Backtested 12 systems – rebates turned 3 break-even strategies into 5.7% annual ROI. Crucial to model rebate payment delays (avg 14 days) affecting compounding.
I layer rebates as a separate input in TradingView. Use GlobeGain’s historical rebate data for specific instruments. Remember to account for minimum volume thresholds – a strategy with 20 trades/month gets worse rebates than 200 trades.
Simple method: reduce trade cost assumptions by average rebate.
Modified my MT5 backtester to pull rebate rates via CSV. Game changer – discovered my GBP/NZD strategy became viable only after applying cashback. Without rebates, 0.4% loss. With rebates, 1.8% gain. Test multiple rebate scenarios including worst/best cases from past 24 months.