I have been working on a strategy trade the news (economic events) … so am very used to the disaster that Slippage can cause to trades… I have a question that I hope somebody can help with…
I have been trading 4 months Live with my strategy and have been in profit each of those 4 months…
May 2019 - +3.65%
June 2019 + 2.19%
July 2019 + 2.10%
August +15.03% !!!
I started in May with £250 in my account, and as the month ended (in small profit), I added extra funds to start June at £500… and so on… July started at £1000… August I again topped up and started with £2500.
September I started with £5000… but so far to-date (today is Sept 19th 2019)… I am in a disastrous loss for the month of – 10.09% !!!
September’s trades seem to be subject to much worse slippage than the previous 4 months… and here Is my question….
Is that fact that I am increasing my lot size accordingly as my ac funds get bigger meaning that my Pending Order Trades/Stops etc are getting executed later than my earlier trades of much smaller Lot sizes …?
I know that a £5K account is still nowhere ‘big league’ …. but is this ‘a thing’ …will slippage get worse the larger the Lot size….? … and if so, could this be the reason why September so far is a losing month …?
Thanks… but I’d guess the majority of Traders know what Slippage is… search ‘Forex Slippage’ and you’ll get a good idea… hardly any Traders specifically choose to trade news (where slippage occurs)… so I realise it’s quite an uncommon question.
When you ask a question like the one you’ve asked in relation to an account size that you yourself have stated is not particularly large then that tells me that you are not an experienced trader. Therefore I wanted to know whether you truly understand what slippage is. My next question to you would have been related to how you enter the market. Once all the parameters have been understood then suggestions to ameliorate your risks can be made.
But it looks like you have this handled so good luck.
Hi there… I’m not suggesting Lot size causes Slippage out of nowhere… what I mean is when Slippage ‘always’ already occurs… say during Non Farm Payrolls… then I wonder whether orders are filled, or stops executed at the same level if you have larger Lot sizes. For example… a pending order getting fulfilled at the price I asked … if I had a large ac, and was putting down Lot sizes of say £100 per Pip then that I would assume has less of a chance of being fulfilled than an order of 0.05 per Lot?
Of course position size impacts execution. Same as in physical market - you will have to wait more to sell 5 tonnes of apple than 100 kg and part of your position (or the whole) can be filled at slightly different price. That’s why I split big lots between brokers to fill them faster and reduce transaction costs.
Thanks @ontario … that’s the first sensible answer that has understood my question. … I’m trying to find out (roughly) what Lot size will start to have an impact.
As mentioned… when I was trading on £250 … Lot size was roughly 0.06 … when trading £5000, lot size can be 1.6 … and September I have noticed much much more Slippage… but I would have thought that it’s still a really small Lot size and should not have made any difference… or does it…? my question is should I see a difference between those two lot sizes… or is it not until Lot sizes are much much much bigger, and my bad September results are nothing to do with it being a greater Lot size… and it’s just that the market and conditions are not in my favour this month as they were the in the previous 4 months ?
