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Spreads and Slippage

  • #41
  • Sep 20, 2006 2:26pm Sep 20, 2006 2:26pm
Where can I find this data raging bull??
There is nothing in my Alert screen except for the fast market conditions warning.
Profit is where readiness meets Opportunity
  • #42
  • Sep 20, 2006 2:29pm Sep 20, 2006 2:29pm
Quoting FXopportunist
Where can I find this data raging bull??
There is nothing in my Alert screen except for the fast market conditions warning.
That's odd. It's all there for me.

Try this:

Right click... preferences... under "alerts activity notification"... make sure "include connection events" is checked. Not sure if that'll make previous connection events appear, but certainly in the future should something like this happen again. Let me know if this works.

As a test... when you're done changing the preferences, double-click the 3rd light green light on the main window status bar. It should reset the server connection and it will say so in the alerts.
  • #43
  • Sep 20, 2006 2:30pm Sep 20, 2006 2:30pm
I got the alert too, there is always an alert when i sign on MBT, saying that there are volitile times coming up (news annoumcements), which MBT has a link explaining what might happen during these times of trading.
  • #44
  • Sep 20, 2006 2:31pm Sep 20, 2006 2:31pm
That box was not checked. I have checked it and will keep an eye on it.

Are you with MB?
What caused the disconnects??
Profit is where readiness meets Opportunity
  • #45
  • Sep 20, 2006 2:33pm Sep 20, 2006 2:33pm
Quoting FXopportunist
That box was not checked. I have checked it and will keep an eye on it.
Cool deal, did you try the test?

Quote
Are you with MB?
What caused the disconnects??
I wish! But no... I just spent a lot of time demoing their platform learning the ins and outs. Not sure what caused them, though.
  • #46
  • Sep 20, 2006 2:36pm Sep 20, 2006 2:36pm
You are a handy guy to know ragingbull , have you been statisfied with the consistency of your fills?
Profit is where readiness meets Opportunity
  • #47
  • Edited 3:06pm Sep 20, 2006 2:47pm | Edited 3:06pm
Quoting FXopportunist
You are a handy guy to know ragingbull , have you been statisfied with the consistency of your fills?
Haha thanks!

Most definitely. Lately, I've been getting up very early in the morning (before the London open) to place a few trades. I think I've placed about 25 or so orders since I've opened the live account on Sept. 1. No problems with fills at all... and when I tried news trading last week I set a 10-pip spread between my stop and limit orders. I was consitently filled at the limit. That's been my experience so far.
  • #48
  • Edited 3:04pm Sep 20, 2006 3:03pm | Edited 3:04pm
I am on the fence right now ragingbull. I like the platform. I love the back office! Those guys are on the ball in a big way!!!! But the speed and consistency of the fill is below my expectations so far. Even though this is the 2nd time I have had platform problems, I am sticking with them for now. I just think everyone I have dealt with at MB has been top notch.

I am looking for a 2nd broker too. I have looked at so many lately it has become like a 2nd job. I amn soooo sick of it. I don't think what I want is so unreasonable.
I just want a stable reliable platform, top notch liquidity, tight spreads on the pound and franc, fast consistent execution, one click dealing, and advanced orders (OCO , stops limits and trailer). Is that totally unreasonable??? I have not found it so far.
Profit is where readiness meets Opportunity
  • #49
  • Sep 20, 2006 3:11pm Sep 20, 2006 3:11pm
You're right... I don't think that's too much to ask for. I'm still relatively new to this game so I'm not sure if I even know what it is I want from a broker just yet.

Give it time... either MB will meet/exceed your expectations with time, or another broker will come along and offer you what you want. Just out of curiousity, have you tried adjusting the MBTX price vs. speed order entry thingy in the preferences section. My guess is it's more than just a gimmick, but I don't have enough experience with it yet to say anything definitive. That might help with the speed/consistency of your fills.
  • #50
  • Sep 20, 2006 3:25pm Sep 20, 2006 3:25pm
Quoting ragingbull94mtx
You're right... I don't think that's too much to ask for. I'm still relatively new to this game so I'm not sure if I even know what it is I want from a broker just yet.

Give it time... either MB will meet/exceed your expectations with time, or another broker will come along and offer you what you want. Just out of curiousity, have you tried adjusting the MBTX price vs. speed order entry thingy in the preferences section. My guess is it's more than just a gimmick, but I don't have enough experience with it yet to say anything definitive. That might help with the speed/consistency of your fills.
I saw that little gimmick, I did not touch it. I thought it was kind of funny. you know, like someone would actually want it to be slower

I will ask tech what it actually does and if it should be touched.
Profit is where readiness meets Opportunity
  • #51
  • Sep 20, 2006 3:33pm Sep 20, 2006 3:33pm
Quoting FXopportunist
I saw that little gimmick, I did not touch it. I thought it was kind of funny. you know, like someone would actually want it to be slower

I will ask tech what it actually does and if it should be touched.
Yeah tell me about it!

Let me know what you find out, if anything.
  • #52
  • Sep 20, 2006 3:53pm Sep 20, 2006 3:53pm
Dan at MB says that it is a trade off. The faster setting that you choose, the more slippage you are likley to get. He also said that it has a much greater effect on equities when using ISLD or ARCA ECN's. Brian at MB said it only works on Limit orders for Forex. I would need somebody with a real world frame of refernce to tell me what to expect before I mess with it.
Profit is where readiness meets Opportunity
  • #53
  • Sep 20, 2006 4:02pm Sep 20, 2006 4:02pm
Quoting mrmikal
There is nothing wrong with what you're seeing. 0 pips are probably closer to 0.5 pips...you're probably not displaying all of the decimals or MBT is just not giving them.

As far as an exploit...what do you want to exploit? you either pay 1 pip and commission or you pay 0 pips and commission. Either way, you have to get the trade to go in your direction before you make any money. Did I miss something?
I agree w/ mrmikal if that 1 or 2 pips is going to make a difference for you to become a successful trader the forex mkt probably not for you.


turbo
  • #54
  • Sep 20, 2006 4:07pm Sep 20, 2006 4:07pm
Quoting FXopportunist
I find myself wondering what role technology is playing in all of this. The increasing numbers of automated strategies, especially on the commercial level. New order and communication systems connecting the markets. And just general faster access to liquidity than in the past.
Mate if you really look into the number of automated strategies is no more diff than Mr. Levi selling jeans to the gold minner you show me one automated strategis that works. Also at the commercial level most trade are still being done over the phone threw a desk.


turbo
  • #55
  • Sep 20, 2006 9:45pm Sep 20, 2006 9:45pm
Quoting FXopportunist
Dan at MB says that it is a trade off. The faster setting that you choose, the more slippage you are likley to get. He also said that it has a much greater effect on equities when using ISLD or ARCA ECN's. Brian at MB said it only works on Limit orders for Forex. I would need somebody with a real world frame of refernce to tell me what to expect before I mess with it.
That makes sense, what Brian (hey that name sounds familiar! ) said. I had the setting set closer to fast (7 or 8, I think) when I entered the stop limit orders during their fast market conditions... the result was my orders kept getting filled at the limit... never closer to the stop or in between. On the next NFP, I'll try a stop limit and set it closer to price -- see what happens.
  • #56
  • Sep 22, 2006 9:58pm Sep 22, 2006 9:58pm
Quoting FXopportunist
Straddled Canadian unemployment today.

was a good solid 40 pip spike

Used Stop Limit orders 15 above and below.

No Fill.

Last heavy spike I tried a Stop Market order and the slippage was 13 pips.

While it is way to early to draw a conclusion, that is what we know so far.
I have been doing a little research on the slippage issue and think I can see something. I can't do this while I am trading but have to be on the side because the numbers change so quick. If you go to the Level II screen and watch the orders that are out there at any time you will see that lets say the best bid offer is 1.0001 and there are 60,000 lots offered well when those 60k are eaten up the next offer may be 1.00014. The slip is not that you offered at 1.0001 and did not get filled threw 1.0002, 1.0003. 1.0004 etc. It is that some one or a bunch of some-ones ate up everthing that was available 1.0001 and the next avaiable was 1.00014. You can also tag onto any offer that is out there and track it.


Now in the tradition of "This is no Buy sell....Recommendation" This is not a fact it is only something I have observed.
  • #57
  • Sep 23, 2006 9:13am Sep 23, 2006 9:13am
Quoting bapxyz
I have been doing a little research on the slippage issue and think I can see something. I can't do this while I am trading but have to be on the side because the numbers change so quick. If you go to the Level II screen and watch the orders that are out there at any time you will see that lets say the best bid offer is 1.0001 and there are 60,000 lots offered well when those 60k are eaten up the next offer may be 1.00014. The slip is not that you offered at 1.0001 and did not get filled threw 1.0002, 1.0003. 1.0004 etc. It is that some one or a bunch of some-ones ate up everthing that was available 1.0001 and the next avaiable was 1.00014. You can also tag onto any offer that is out there and track it.


Now in the tradition of "This is no Buy sell....Recommendation" This is not a fact it is only something I have observed.
Hello Bapxyz,

Yes, that is a pretty good description of how trading works at ECNs and centrally cleared exchanges. With that being accepted as fact now we must go further with your thought and ask why some perform better than others. The answer is two fold: 1. How well you can get filled on your order is a function of how many potential takers are exposed to it. In short the size of the liquidity pool. How many members and what size are these members of your ECN? That is the main factor. 2. How good is your brokers software and how well are you represented in the said ECN? How fast does your order get to the potential takers? What priority do the other ECN members give to your borkers orders? That is part two.

How would you ever answer all of that? You probably can't. But, we can talk about our fills so we know who is performing and who is not
Profit is where readiness meets Opportunity
  • #58
  • Sep 29, 2006 10:59am Sep 29, 2006 10:59am
I have to take the chance to make a very positive post for MB Trading. They have the fastest and best back office I have ever dealt with. When I origionally funded my account. My account was credited by the time I returned home from the bank! I just made my first withdrawl today and it was processed 15 minutes after I sent the fax! Two big thumbs up guys!
Profit is where readiness meets Opportunity
  • #59
  • Sep 29, 2006 9:12pm Sep 29, 2006 9:12pm
Quoting FXopportunist
I have to take the chance to make a very positive post for MB Trading. They have the fastest and best back office I have ever dealt with. When I origionally funded my account. My account was credited by the time I returned home from the bank! I just made my first withdrawl today and it was processed 15 minutes after I sent the fax! Two big thumbs up guys!

Sounds very good when it comes to depositing and withdrawing money.
But more importantly, what is this broker's performance when you are TRADING? Especially trading the news.
  • #60
  • Sep 30, 2006 9:53am Sep 30, 2006 9:53am
Quoting FXopportunist
Hello Bapxyz,

Yes, that is a pretty good description of how trading works at ECNs and centrally cleared exchanges. With that being accepted as fact now we must go further with your thought and ask why some perform better than others. The answer is two fold: 1. How well you can get filled on your order is a function of how many potential takers are exposed to it. In short the size of the liquidity pool. How many members and what size are these members of your ECN? That is the main factor. 2. How good is your brokers software and how well are you represented in the said ECN? How fast does your order get to the potential takers? What priority do the other ECN members give to your borkers orders? That is part two.

How would you ever answer all of that? You probably can't. But, we can talk about our fills so we know who is performing and who is not
Actually I can answer ( to a reasonable extent) all your questions but one.
Q: What priority do the other ECN members give your brokers orders? Unless I had an insider in the programing side of the houses I guess I would never know.
But and this is one of the great things about this forum, your answer required me to think about the subjest from a different perspective, thanks.
As communication speed is a factor of "slippage" I went and reviewed my notes on download/upload speed from different locations around the USA. It's not so much the raw speed you are concerned with but the "round trip time" usally expressed im Mil. seconds. Not to belabor this point so in summary;
If your broker is in CA you are in TX and the connection to the ECN net. is in NY and you have really good cable you can expext 3/4 of a second or more time lag between the time an event happens "news" you view it on your screen and then send an order that gets to the ECN network. This does not include your reaction and decision speed and the time is much worse usally. Add in a normal subscriber satalite internet feed and your time will approach 2 seconds. I have found that the NY and LA networks are the slowest. Point being that a second or two equates to quit a few pip's at news time. www.testmy.net is a good place to start playing with this.
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