Metatrader - Pending Orders - Question.

Hey guys I have a question... When you setup a pending order in Metatrader, is it registered with the broker so that you get filled at that exact price when it's hit?

I'm trying to create a system where multiple pending orders are setup in each direction for news events. Small profit targets, small stop loss, high percentage of wins/losses is what I want to accomplish. Obviously there is a lot of price action after a high priority news event which is why price needs to be filled as per quoted on pending order... will this work? Thanks.

pending orders still have slippage

Each Broker will perform differently though right?

Usually

Please let me know if this has any potential to work, I've attached an image of how the system works. Win:Loss ratio would be very high so obviously you would only need to mantain a 50/50 rate to be successful. I use a broker called "GoMarketsAUS" and their execution time is extremely fast.

The news straddling strategy used to work until brokers wised up and started increasing spreads.

If you find the spread not increasing, then you have a chance.

Yeah I'm pretty sure the spreads are currently fixed, they did although mention that they will be changing to an ECB style feed soon though...

By the way... why do broker's increase their spread when news hits? Is it to protect a loss on their side or to capitalize on profits (since a lot of people anticipate trading at that time)

its natural. Banks pull orders before news (why take bad side of trade?) - so liquidity dries up. price points get further apart - huge gaps are instantly created since no one near will take a losing order - combine that with banks that will take trades only if they can make more cash to help hedge the risk and you can see why news periods are risky (but profitable) trades.

What's your take on this broker:

http://www.cmsfx.com/en/forex-tradin...forex-spreads/

I just closed my account with CMS. On the positive side, their VT2 platform makes coding custom indicators VERY easy.

At it's best on a live account, CMS' fill time-- on a market orders-- is about 2-3 seconds, which is VERY slow in this day and age.

But the worst part is, CMS actively employs the practice of re-quotes. That's when you enter a market order and a little box pops up and says something like, "No, we can't fill your order at that price, how about this price." Then you have 2 seconds to decided, after which time the window closes and the order is canceled. Over at GFT, at least they'd offered me a price close to the current price. BUT at CMS their re-quoted prices are wildly bad, AND even if you accept it, they may reject their own re-quoted price (!!!) IF... the market moves in your favor in the 10-30 seconds it takes to fill your order. This problem only occurs when you're trying to take profit with a live account. That's CMS for you– the worst case of bad fills I've ever seen!

PS: You won't have this problem on your demo account.

hi, i would like to know what is the maximum no of pending orders that is allowed or can be generated on mt4 platform, irrespective of the broker...14pairsx20 =280 pending orders for example....cheers

every broker has a different limit. the norm is around 200 orders.

i Have a problem with my broker with pending orders. I really need to know if this is COMMON or not. Because my broker says it is very common.

Following the same strategy (pending orders before event) my pending order was not triggered and then suddenly it triggered in a different place.

If you can see in the pic, my entry was not triggered and it was about 700 point down. and instead of tiggering at my desired point. It triggered 700 points later!!!!

Is that common? or should i change my broker. Thanks

It is not common, but it is predictable. Every broker (stock, futures, forex) have a rule that stop and limit orders will be filled at the best price once they are triggerred. Essentially they become market orders. So if the market is 20 pips from your price, that is the price you get filled at. Or if it is at 700 pips, that is where it is filled. Check your terms of service, you will find a clause that covers this situation.

That is why experienced traders take precautions like avoiding news releases.

Well, i am not really looking into trading "technical". I have tried it and all price action signals are no use if there is a fundamental news event. Big moves come from fundemental news. However, pending orders don't get triggered

Live and learn.