A rule that works for many:
- Know your normal spread for each pair and hour, from a few weeks of logging.
- Don't enter when the spread runs above roughly one and a half times its usual width.
- If already in a trade when the spread widens, don't move the stop tighter.
Why it matters: the spread is paid on entry, and also affects where stops trigger. A wide spread on entry makes the trade start further behind.
A worked example: normal 0.3 pips, current 1.2. With a 5 pip target, 0.9 pips more is 18% of the target given up before the trade starts.
How to check: tag trades by spread at entry and compare results.
Do you check the spread before every entry?
