Prepare for the unexpected in live trading

I open this thread for serious traders. Anything could happen in Forex, in this thread we talk about how can we be prepared in live trading.


After I demo 3 month, I opened my first live account, and on my way funding it. I will write my concerns in live trading and provide my solution, And I have some questions too, any feedback is welcome!


Issue A: slippage?
I don’t look at any Time Frame smaller than H4, I use pending orders only, all the pending orders placed 25 pips away or more.

Issue B: stop hunting?
My platform have server based stops, I don’t use them, I will exit my position once close get across my stop. I have the discipline now after 3 month demo.

Issue C: Money safety?
Starting with a small account which I can afford to lose, Bank the profit, If I likely can make any J

Issue D: Re-Quoting?
As a beginner, I have very small account, they say 95% traders lose money, they say every thing with your broker is fine when you are losing money. But it is another thing when you beginning taking down the house.

Suppose re-Quoting did occur in the worst scenario, what can I do? As I said earlier, be prepared for everything: What’s kind stuff have legal effect when I argue with their customer service? Suppose I post all my pending orders at FF before I send the orders to the brokers server, Can the trading journal in FF save me after the broker mess me around? If I did not post my trading journals here, what’s about post it in google/yahoo groups?


Issue E: changing my order?
Is there any broker do this kind of ugly stuff? I have no idea.


Forex is a tricky business, just like others, what I have written is the worst case scenario, I hope all this bad stuff do no exists. The point is we hope the best and prepare for the worst, what’s your suggestions?


Happy Trading!


-- Aidans

just for you to understand how a Market Maker can play with you. For an example you place your pending order based on your trading strategy on a new high lets say 1.3610 so you place a order to buy at 1.3610 now the worst case scenario may be that your broker doesn't guarantee you "no slippage " and fills your order with 1.3612 but and now comes the tricky part the market never went higher then 1.3608 so your system didn't generate a buy order but you are still long and the market gos down and no you haven't any legal argument because your broker will tell you that they as market maker have the right to quote any price they want and to underpin their statement they will say that other clients may had have the opportunity to act on this price so their is no point to hunt you because they may also loose on it ( as far as i experienced their are out MM which actually feed different prices to their clients to avoid that but it is impossible to prove and also on their charts you may for a short time see then different prices between too .) and on a placed Stop loss order the same game is going on to have some security you must place your orders manually and then you just get re-quotes all this practices interfere with your ability to stay calm and focused on the market

Thanks for clear it up. now I understand the slippage.

About the 1.3608 High, I may miss some thing here:

Did you means that I palce my buy stop at 1.3610, on my chart, the price get High is 1.3608, then the market just go south, BUT on my order histroy, my stop order get triggered. right?

To me, 1.3608 can trigger my 1.3610 buy stop is really hard understand. By defination, stop order get triggered only if the price get across it, then the order get execute by market order. Since the bar's high 1.3608 is smaller than my stop, the stop should not be triggered.

yes the price will on a reliable chart only be 1.3808 but at your MM it will show a high of 1.3610 and maybe even more