Hi there,
I would like to share this video with you, guys, to spread the word about slippage and how to avoid it.
As you may know that slippage is the difference between the price you enter a trade at and the price your broker actually execute it at.
It is a very common trading issue and cost you $$$. Literally, it can make a difference between winning and losing trade execution.
Watch it now and share it with your friends to get them know the solution (your broker won’t tell you).
[B]where in the mt4 platform /site can v get this trade manager[/B]
The video contains the website which sells the script; or you can just click on ‘More Info’ at the upper right corner of the video frame.
You can test it for free, apparently, but then you’ll have to subscribe.
I don’t know which broker(s) the guy in the video deals with … I have never experienced even 3-pip-slippage once, not to mention 10 or 12 pips.
The day I see slippage of that magnitude occur, I’ll change brokers.
I’d advise to rather look for a proper broker and ensure sufficiently fast internet connection than spend money for yet another ‘fantastic new product’, especially one which will cost money every month.
You’ll probably end up paying more for the monthly subscription than any slippage would cost you.
Cheers,
P.
Hi PaladinFX,
thanks for your comment. Yes, you are right, you probably won’t experience any slippage on demo account (due to modelling infinite liquidity) or on real account with small investments (lot size).
However, if you start trading seriously with a decent $50,000 + account with 8-20 LOT s position size as an average you will see immediately what I was talking about.
No broker can guarantee the promt execution and they don’t. If you have a big slippage they point to fine print, saying that the chart is only for demonstrating the price movements.
As I see that there is no monthly fee or recurring subscription fee; the price is one time fee, by the way.
Cheers,
Dantepuma
I am trading a live account with a balance considerably higher than 50k, averaging position sizes of 5-10 lots; yet I have never experienced a 10-to-12-pip-slippage. Rarely there is a pip or two slippage.
I repeat: get a proper broker and a proper internet connection, if you experience slippage of the magnitude described in the video.
(By the way, 8-20 lots position size with a comparatively small account of 50k-plus USD, as decribed by you above, sounds like high-risk trading to me rather than like proper money management.)
Hmmm, ok, if you say so.
Yet the FAQ page of the websites refers to ‘subscriptions’, which led me to believe there was a monthly or annually recurring fee.
Cheers,
P.
Hi PaladinFX,
I don’t want to give you a lesson calculating the correct lot size. You will figure out that with a $80,000 account risking 1% it you can take 8 LOT position with 10 pips Stop Loss distance - which is more than enough for scalping.
To tell the truth, I have never seen, talked to or read about any real trader who had no experience with slippage, 100% of traders talk and complain about it.
But look. If you do not have slippage, you should be happy with it and I am happy with it, too.
But in this case I cannot get your point. If you don’t have slippage, then this topic and this video is not for you.
Simple ignore this thread, ignore this video and ignore my post and drop this topic, please.
Thanks, peace,
Dantepuma
Yes, of course, true.
But wouldn’t using the script keep one from getting any trades at all, then?
If your average S/L is 10 pips and you always have 10-12 pips slippage, nothing would ever happen on your account.
True again.
Of course I experience slippage, like everybody else. It cannot be avoided completely.
What I object to is the video exaggerating the situation in order to sell a product.
The average slippage I see is between 0.2 and 0.5 pips, and since price slips in both directions, there are as many trades where slippage gives me a few extra bucks as there are trades in which slippage costs me money.
I posted here because I object to people trying to sell their software by exaggerating and distorting facts.
As a matter of fact, I’m surprised that moderators have allowed this thread to live that long at all.
That’s probably owing to the fact that it doesn’t contain a typed link to the selling website, but rather only an innocent-looking youtube video.
I am providing a view of the slippage situation which opposes the video, because there are many new traders on this forum who have the unfortunate tendency to unnecessarily spend money on things they can do without.
Many experienced members of this forum do the same … surprisingly I seem to be the only one to have discovered this thread yet.
P.
Slippage is partially caused by the trading system of broker’s side. So you must be cautious in choosing the right broker.
I just got hit with a 70 pip slippage. I’m filling out paperwork with FXCM for resolution.
Good on you Paladin for helping out. I couldn’t watch the video but how is a script going to fix slippage (which occurs when your broker cant fill or get out of the order fast enough?). I haven’t had any serious slippage with my live account (FXCM), but if i had a 70 pip slide id probably lose it.
It was USDJPY. My platform was showing I was $90 in profit. When I closed outhe the pair, it closed $-90. So, it actually cost me $180. The audit is underway…
hope for you
Hi Wmona,
It’s important to keep in mind that slippage can either be positive (where you get filled at a better price) or negative (where you get filled at a worse price). These stats show that overall, positive slippage is just as likely to occur on your FXCM platform as negative slippage: http://docs.fxcorporate.com/faq/slippage-statistics.pdf
However, there are specific trading strategies and market approaches that may increase your chances of receiving positive slippage while reducing your chances of receiving negative slippage.
For example, FXCM recommends opening and closing trades using limit and limit entry orders in most cases. The benefit to these order types is that you are guaranteed to receive your requested price or better without receiving negative slippage. Remember, that although limit orders guarantee price they do not guarantee execution making order types an important consideration in any trading decision.
And are you familiar with the Market Range feature on your FXCM platform?
When trading with market orders, FXCM recommends setting the order type to “market range,” to avoid potentially receiving negative slippage. A market range order type allows you to control the amount of slippage your order can receive when it executes allowing for price certainty. A market range of “X” pips assures that all or part of your order will be filled within a “X” pip range of the current market price (“X” pips above or “X” pips below) if liquidity is available.
If you have any further questions about our platform, feel free to hit me up in the Broker Aid Station.
Jason
I’m glad to hear you logged a case regarding this. The Trade Audit Committee will investigate, and if there was an error in our trade execution, we will make the appropriate adjustment to your account.
If this is truth - good idea. I hope everything will be ok.
I did not know you had the market range feature. Very nice!
To actually simulate a virtual stock exchange where beginners can try online trading is very helpful. Good thing Ask Mario Singh from FX Primus provides this tool.
start trading on real ECN account and avoid low liquidity times (big news)
this is only way to get filled right to 1/10 of pip.
70 pips is not normal. Was it slippage or a market gap? Gaps can occur which is not slippage and a normal event.