Block Trading?

I'm not sure how well this works, but generally speaking, is it any more beneficial to me to open several small lots as opposed to one large lot? I'm thinking along the lines of order execution times and getting filled at a better price.

Example:

If I wanted minimal slippage, and faster (relative) order execution, is it better for me to...

1. Open 50 trades at 0.1 lots each?
2. Open 1 trade at 5 lots?

RR

Certainly a 5 lot order could be filled as quickly as your mini lot orders. And probably processed faster. Though 5 lots is decent size to us, it should be rather insignificant to your broker, especially from a being able to fill it point of view. Are you thinking more in terms of your broker purposely slipping your order a pip or two on the 5 lot order, whereas the 50 separate mini lots would go under your broker's radar?
I've never made that experiment, but I would say just entering 5 lots would be the simplest and most efficient way with much less room for error. The only way to know for sure is to try it several times with real money and the broker you intend to use.
In my opinion, even if your broker were manipulating orders according to size, 5 lots wouldn't put you over the big fish threshold--not unless you were swimming in a very small pond. I've read enough of your posts to know that you wouldn't be using a tiny, unknown broker.

That 5 lot/ 0.1 lot is just an example.

I got this idea from what I know of Wall Street stock traders, and some short-squeezing tactics of a few hedgefunds. In an effort to disguise their trades and buy large volumes without moving the market, these institutions break down their trades from say,1 million shares, into 10,000 100 share blocks. I've had the opportunity to trade the US Stock market through a Level II system, and I've generally noticed these things happening.

Given the fact that most MT4 brokers don't necessarily give you a direct interbank trade per se, and instead maintain mini-exchanges of sorts I figure that several smaller lots would be:

1. Easier to fill
2. Disguising a larger intention.

Is this thinking flawed?


Also, as for the trade management aspect, order entry mistakes will only be limited to things like lot size, stoploss, etc. I don't place trades through the standard order entry screen (F9), a lot of my trading is augmented through EAs and scripts. So, if I did go ahead and place a few block trades, I do have a script lined up which can break down trades based on a size limit.

If I wanted to place a 15 lot order, and my max lot size is 2 lots. The script will place 8 trades.

1. 7 for 2 lots
2. 1 for 1 lot.

All of those trades would have the same magicnumber and a specific coded comment defining what group the trades are a part of so I don't have to worry about them. Then I could set my trade management EAs to take over and manage the trades for me.

And to the scalpers out there, I use a special USB gaming keyboard for my trading. (http://www.newegg.com/Product/Product.aspx?Item=N82E16823146002) It's at my left hand and my mouse on my right. Each key is mapped to a specific function (Buy, sell, etc.). And everything is pretty much preconfigured so I can manually execute trades far faster than what the metatrader platform alone has to offer.

I generally trade 20 full lots per click.. I never get slipped so if you have a decent broker you should not have to worry about this problem. Once you start trading 100 full lots or more you might find your script handy. Good luck!