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  • #4,821
  • Dec 2, 2010 12:16pm Dec 2, 2010 12:16pm
Quoting Tony112
oanda spread is been stuck at 1.2 for days now I will quit them
Oanda Chat transcript - today

OANDA: Currently, market conditions are not conducive for us to offer a 0.9 pip spread consistently.
OANDA: When market conditions are more favorable, the spread should go back down to 0.9 pips
  • #4,822
  • Dec 2, 2010 12:51pm Dec 2, 2010 12:51pm
btw, Tony, the 2 pips SL includes spread or not?

I saw people here saying "yes, it does" (so, SL=0.9+1.1), people showing oanda FXtrade preferences with SL=3 (Their SL would be 3+0.9=3.9) and people trading 1.2 spreads forgetting that above 0.9 is untradeable (SL would be 1.2+0.8=2 or 1.2+2=3.2?).

Could you clarify?

Thx

L. S.
  • #4,823
  • Dec 2, 2010 1:33pm Dec 2, 2010 1:33pm
Hey Tony, who offers a lower spread?
  • #4,824
  • Dec 2, 2010 1:37pm Dec 2, 2010 1:37pm
FxPro minimum is 0.8

http://www.fxpro.com/spreads

I don't know anything about them, maybe some of you say what you think.
  • #4,825
  • Dec 2, 2010 1:41pm Dec 2, 2010 1:41pm
Honestly.. I don't mind paying an extra 30 cents on the spread than the normal.. I dont see what the big deal is.. I guess for this strat tho if your trying to keep that 2 pip stop maybe?

Maybe if it moved up to 2-2.5 I would be pissed but I'm paying the 1.2 today and making good money doing it
  • #4,826
  • Dec 2, 2010 4:47pm Dec 2, 2010 4:47pm
Quoting jmag
I trade it manually on Oanda. I was just saying an EA would be nice.

The entry: At NY and London open, when price has moved at least two pips from open, enter in that direction, and get to break even as soon as possible. Like Tony says he will move it by a half a pip at a time. I am at break even by +3 pips or sooner.

I am seeing how it goes changing my stop to 1.5 pips, which Tony had mentioned before too, because when it goes against me with spread it is taking 3 pips which turns out to be about 1.3%.
st


where is the original system that i can read ?

from what i understand , i cannot see how one can make profit from this. firstly, my brokers spread is 3 pips. secondly you enter in the direction the market opens but the market moves so fast that you will not have time to move your stop, and in any case the small stop will be hit very easily, several times !!

i would be interested in seeing tonys results on this.
  • #4,827
  • Dec 2, 2010 5:36pm Dec 2, 2010 5:36pm
I'm concerned about the drawdown too. If just half of the entries are stopped out at 2 pips, really 3 pips with a 1 pip spread, then with the Oanda settings mentioned we can expect over a 20% monthly drawdown if without a epic hit.

By the way the system is on the first page of thread.
  • #4,828
  • Dec 2, 2010 5:38pm Dec 2, 2010 5:38pm
2 pip stop loss is just crazy. Assume some people are having luck but so easy for the market to move 2 pips and with your spread it would even be worse.
  • #4,829
  • Dec 2, 2010 6:01pm Dec 2, 2010 6:01pm
The system is in the first post.

The broker is Oanda, normal spread there is 0.9.

You trade only E/U, away from the news and at minimum spread.

And remember money management is key. You will lose many times to get one big profit.

And get used to the demo platform before doing the real thing. You can configure the platform to spend less time submitting and changing your orders.

Regards
  • #4,830
  • Dec 2, 2010 6:12pm Dec 2, 2010 6:12pm
Quoting jmag
I'm concerned about the drawdown too. If just half of the entries are stopped out at 2 pips, really 3 pips with a 1 pip spread, then with the Oanda settings mentioned we can expect over a 20% monthly drawdown if without a epic hit.

By the way the system is on the first page of thread.
That's because you risk 1% per trade... I'm risking 0.4% and maybe it's too much.

Also, other thing I do, (it's not according to the rules, I know) is this:

1. My SL is adjusted to 0SL when I'm 6/8 pips in profit (depending on price action). So, I'm not adjusting SL in 0.5 pip steps...
2. Then if I still have the trade, I change the SL to +2/+4 at 16/24 pips profit. This way I can come out with a little winner rather than a loser or BE.


Be aware, both of you, that I'm not experienced doing this...
  • #4,831
  • Dec 2, 2010 7:15pm Dec 2, 2010 7:15pm
Tony you will need an ECN.
Dukascopy, MB, IB or similar
Placing your order will probably be a lot more difficult than it is on Oanda's platform, which is why I use an EA. I might be able to help you out there.

For the posts regarding spread. Yes it is part of your stop, so if you place a 2 pip stop and the spread is 0.9 of a pip then the market has to move 1.1 pips from your entry to take you out.

I have attached some spreads from MB and GloCap. MB is well known and I trade with them. GloCap I am experimenting with their demo MT4 platform. The list that uses the the MAX5 suffix are from GloCap.

cheers
Attached Images
  • #4,832
  • Dec 2, 2010 7:31pm Dec 2, 2010 7:31pm
Thanks, Salient for the info on spreads. Very helpfull.

Yes, these have better spreads, but...

Glocap $5 comission - effective spread 1.4
http://www.glocapmarkets.com/forex-spreads-commissions/

MB $0.39 comission per 10000 units
http://www.mbtrading.com/commissions.aspx?page=Forex

Plus, do they allow non standard lot sizes? Example: buy/sell 85400 units... What is your experience on that?
  • #4,833
  • Dec 2, 2010 8:18pm Dec 2, 2010 8:18pm
Quoting Salient
Tony you will need an ECN.
Dukascopy, MB, IB or similar
Placing your order will probably be a lot more difficult than it is on Oanda's platform, which is why I use an EA. I might be able to help you out there.

For the posts regarding spread. Yes it is part of your stop, so if you place a 2 pip stop and the spread is 0.9 of a pip then the market has to move 1.1 pips from your entry to take you out.

I have attached some spreads from MB and GloCap. MB is well known and I trade with them. GloCap I am experimenting with their demo MT4 platform....
Thanks a lot Salient, I am looking into it. Oanda has created a non-tradable environment for me, even a 0.4 pip difference makes a huge diffence when you trade big digits and I refuse to place any future trades under these circumstances.
Invest in alarm clocks
  • #4,834
  • Dec 2, 2010 8:20pm Dec 2, 2010 8:20pm
I think we would agree that the crux of Tony's method is the timing and the risk/reward. I do not know how this can be traded without using an ECN broker.

With MB there are more problems and I am sure each broker will have theirs. With MB, a market order is executed at the Bank's quote not the current bid/ask. Which is why I am using stop-limit on entry. I am moving my break even stop to 1 pip after 5 in profit, as MB may slip me on that fill.

We cannot know the differences in real life between MB and Oanda over time without real trading history. Of course MB would cost more on the losses but the trades would not be the same. Look what happened to me yesterday. I tend to think that Oanda would stop you out more.

I only have sufficient experience with MB but I am sure that we can discuss the option and make a list of possible brokers to use.
Anyone use IB? I believe they have a Java API so it would be great for writing an EA.
cheers all
  • #4,835
  • Dec 3, 2010 12:09am Dec 3, 2010 12:09am
Quoting Tony112
Thanks a lot Salient, I am looking into it. Oanda has created a non-tradable environment for me, even a 0.4 pip difference makes a huge diffence when you trade big digits and I refuse to place any future trades under these circumstances.

This is a tough situation... It sucks to pay almost 50% more than usual, but on the other hand I believe that Oanda's platform is unbeatable for manual trading this system, the way that it creates the order and how the SL can be adjusted so quickly makes it a tough competition for other simple platforms.
Ive seen Oanda raising the spreads before and each time they lower them back again. I think that as soon as the situation with Irland and Portugal calms down the spread will go down to 0.9, IMO, waiting is also an option.
Any one considered trading USDJPY meanwhile? its spread is not affected by the Euro volatility.
  • #4,836
  • Dec 3, 2010 2:03am Dec 3, 2010 2:03am
out at BE
  • #4,837
  • Dec 3, 2010 2:07am Dec 3, 2010 2:07am
London BE
  • #4,838
  • Dec 3, 2010 2:08am Dec 3, 2010 2:08am
BE with little slippage. With spread 1.2 I reduced position size and entered with 3.2 SL, including spread. Anyway, still managed to move to BE.

Now waiting for NY...
  • #4,839
  • Dec 3, 2010 2:11am Dec 3, 2010 2:11am
no trade, 1.2 spread again at 3:00am
Invest in alarm clocks
  • #4,840
  • Dec 3, 2010 2:11am Dec 3, 2010 2:11am
slooooooowwwwwww market
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