Brokers against very profitable robots? - page 2

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every broker is different it's hard to answer that question.
 

JC

Not a single issue here, many factors involved

> 1. brokers lose if you win. that is why they frown on very profitable robots.

Any dealer running a typical 'dealing desk' will trade against you, unless you regularly win, when he can trade with you

> my thought. dont they make money on spreads instead? the loser is the buyer/seller at the other end, not the broker. am i correct?

Disreputable 'dealing desk' brokers want the spread and want you to lose as they are the counter party

> increase spread during hours that the identified robot trades

Spreads on many pairs normally increase during the Asian session (when many commercial EA's trade) - this is due to relatively low volume, its not an anti-EA thing

This is different from where your account breaches the brokers anti-scalping rules and spreads are increased accordingly, but they should warn you that this is liable to happen...

Again a dodgy dealer will not warn you!

> close your account

Has happened with the rough end of the business

> disable your orders from getting filled

This can happen on disreputable brokers anytime, whether the trade is by EA or not

> apparently, the EA's ad mentioned these, as apparently, their EA is able to 'hide' or 'sneak' through broker's detection attempts.

No, this is an urban myth that changing the MagicNumber will somehow 'hide' the EA's operation from a broker - if you believe this then I have some great value shares in a bridge in Brooklyn I can sell you :)

Think about it, if a broker has 500+ sell orders on EURGBP all kick off at say 04:05, he doesnt care about the magic number, he knows its a certain commercial EA again...

On a general point, some people think that going with ECN or STP brokers will avoid broker intervention...

Well it does, but puts you at the mercy of a much spikier data feed direct from the banking system.

Many indicator based EA's will not work well on these feeds, plus variation in spreads can be much greater & much more frequent

You will also still be vulnerable to false breakouts caused by market movers

I have made enough with EA's on straight brokers to not worry about any of the above!

As ever, my 2c worth

-BB-

 
tovan wrote >>

Jason,

I looked at two different brokers and saw that same low swing. The low-point was different with each broker, but it was clearly a market driven move. I'm with Jonathan. I don't tend to believe most of the hype about brokers intentionally manipulating the market price to make false profits at your expense. Who knows, maybe I'm wrong, but not in this case.

- Tovan

Well Thats good to know...

I've seen that spike and many other like it and scratched my head. Thats well out of norm. There is a robot out there that works off of MT4 for the brokers. I forgot what it was called atm. Sadly, work is more important than figuring out what the name was.

 

Can a broker find out if we are trading using a non-commertial EA which does not scalp?

Is it anything to do with the magic numbers. I have a position trading EA which I am thinking of going live.

So far I have been testing on a demo accout. The EA does not scalp. Do you think my broker will know

that I am trading using an EA.

These are interesting links

https://www.youtube.com/watch?v=He6BRXHxMZ0&feature=related

https://www.youtube.com/watch?v=IV8hb2lfvUo&feature=related

https://www.youtube.com/watch?v=s_gzmNeaXGg

reply

 

The Dealer knows if you are manually trading or using scripted commands.

They can permit/disallow scripted commands

.

Example: http://www.migfx.com/fileadmin/download/documents/en/mig_form_expertadvisorrequest_en.pdf

 
I guess you are right. In the past my EA orders were never executed and I have always wondered as to why the market order didn't go through. I always put market orders with a slippage of zero ( i.e. buying at Ask price and selling at Bid with no slippage). On a demo account these orders go through fine but on a live account they fail quite a few times. The best way for EAs is using ECN brokers who support MT4.
 

> The best way for EAs is using ECN brokers who support MT4

Only if they are primarily price-action based and not sensitive to spread variations

-BB-

 
jyforex:
I guess you are right. In the past my EA orders were never executed and I have always wondered as to why the market order didn't go through. I always put market orders with a slippage of zero ( i.e. buying at Ask price and selling at Bid with no slippage). On a demo account these orders go through fine but on a live account they fail quite a few times. The best way for EAs is using ECN brokers who support MT4.


And the best way to put the "wondering" to bed is to use the GetLastError() function. CB
 

Even if we use GetLastError() we will know the error number what it the use to us?

Anyway the EA would have missed the trade.

 
jyforex wrote >>

Even if we use GetLastError() we will know the error number what it the use to us?

Anyway the EA would have missed the trade.

CB is suggesting that you use GetLastError() to figure out why your trade is failing and improve your code so that it doesn't happen again. Brokers don't reject your orders just to screw with you. It happens because of some technical problem in the order delivery or timing. So take some advice and try to learn from your execution failures.

- Tovan

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