Disliked{quote} 0.10 pips was the slippage. When us overlaps london, then there is more liquidity and slips rarely happens, but on major exotic its possible. I think many traders get slipped 0.10 pips without noticed it. Before trading the active traders program, is was using their standard account, only minor problems, that could happen everywhere. Their liquidity pool is the same no matter what type of account you trade with pepperstone, the real difference is in spread and commision, wich is much lower. - But i also need to keep a certain amount of cash...Ignored
Ive been trading for about 5 years - algo trading on the majors, doing 5 to 50 intraday trades per day per symbol, flat at the end of each session.
Ive been analyzing my trades - profits and losses, and recently I have figured out the exact impact of slippage on my trading results. Below is the explanation of my measurements and calculations. Pretty substantially not in my favor I must say.
I built a script to calculate the differences between the prices my algo sees when sending trades and actual execution prices. My algo is hosted on a VPS CNS and I’m trading on a Pepperstone Razor account, so the latency to broker’s server is not more than 1 ms.
I’ve collected data for more than 1.5 months and now I have stats on 4621 trades and got following results:
This means on average I lose about 1.71 pips (4th decimal) on slippage each trade .
Having 10 trades a day means that I lose on slippage 17.1 pips a day -> 376.2 pips per month -> 4,514.4 pips a year.
When I calculate the sum in USD the figure really scares me - it’s 4 times more than I have in my account!!! If I could keep this money I’d be way closer to retiring.
Acta non verba