mql5/Indicators/MyIndicators/Quant/SpreadCost_Pro.md

Spread Cost Pro (Indicator)

1. Summary

Spread Cost Pro is a risk management utility that visualizes the "Real Cost of Trading" dynamically. It doesn't just show the spread in points (which is often meaningless in isolation), but calculates the spread as a percentage of the current market volatility (ATR).

This helps traders answer the question: "Is it worth entering a trade right now, or is the spread too wide relative to the potential profit?"

2. Methodology

Cost \% = \left( \frac{\text{Spread}}{\text{ATR}} \right) \times 100

• Spread: The difference between Bid and Ask at that historical moment.
• ATR: The average range of price movement (potential profit space).

3. Usage

• Green Bars (< 10%): High Liquidity / Cheap. This is the ideal time to scalp. The market is moving enough that the spread is negligible.
• Red Bars (> 30%): Low Liquidity / Expensive. The spread is eating up a huge portion of the potential move.
  • Warning: This often happens during News Events, Market Rollover (23:00), or on Exotic Pairs.
  • Action: DO NOT SCALP. Only enter long-term Swing trades where the spread matters less, or wait for liquidity to return.