How can you calculate the maximum lot size that would not affect the market
I am interested in any views on how to calculate the maximum lot size you can use before you have an affect on the market. It would seem to me that in quite periods a small lot size could have an affect. I would like to know what criteria i should use so i can code it into my EA.
I am also interested in views concerning this with multiple people using the same EA. If someone creates a really good EA and then either gives it away or sells it, you could easily end up with hundreds of people all doing the same trades. This could result in 100's of Lot's being bought at the same time, which would probably help move the price up, but then when they all try to close the trade at the same time, that could force the price down.
So anyone have any views?
Thanks
The impact of individuals on the market (including all the individuals put together trading as one) is insignificant when compared to the institutional traders. The market is never closed. This means that there is ALWAYS an institutional trader doing business somewhere in the world. The reason why it is not advisable to trade in quiet times is because there is not enough institutional traders, meaning when they trade the market behaves erratically, and so the individual traders can be caught on the sharp end. NOT because the individual traders can influence the market.
If you want a view on how large a trade you need to place or close to impact the market, rest assured that your broker will not allow it on automated trading. Therefore it will not happen in the quiet time, and so it will not impact the market. As an individual it is impossible to impact the 4 Trillion dollar a day Forex market.
Rather concern yourself with the performance of your ea.
whocares
The impact of individuals on the market (including all the individuals put together trading as one) is insignificant when compared to the institutional traders. The market is never closed. This means that there is ALWAYS an institutional trader doing business somewhere in the world. The reason why it is not advisable to trade in quiet times is because there is not enough institutional traders, meaning when they trade the market behaves erratically, and so the individual traders can be caught on the sharp end. NOT because the individual traders can influence the market.
If you want a view on how large a trade you need to place or close to impact the market, rest assured that your broker will not allow it on automated trading. Therefore it will not happen in the quiet time, and so it will not impact the market. As an individual it is impossible to impact the 4 Trillion dollar a day Forex market.
Rather concern yourself with the performance of your ea.
whocares
Thank you for your help
No, you match what I've been using as a yardstick...
.
4t/day
2-3% is retail
.
"While there is no doubt that the industry is changing, Lee sees a bright future for retail forex. In the long run, the regulatory changes should help the retail forex market increase its legitimacy, which in turn should help the market grow even more, he says. Today, retail accounts for only 2 percent to 3 percent of the total $4 trillion-a-day FX marketplace, which leaves a lot of running room for this market. “I think we’ve really just scratched the surface of where this market could go.”
.
page 4 of "Forex Regulation Bites Business"
The thing is you are not so much trading against the "market" but rather against your broker.
If your broker is sufficiently large or is ECN-based, then for practical purposes, you are trading against the market.
If your broker is a small market-maker, things are less clear-cut. It is possible that if you are a reasonably large player against a small broker, you may run into broker "limits" sooner rather than later.
In answer to the original question, the following will return the maximum lot-size you can use without any fear of impact to the market.
Print(DoubleToStr(MarketInfo(Symbol(),MODE_MAXLOT),2));
CB
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I am interested in any views on how to calculate the maximum lot size you can use before you have an affect on the market. It would seem to me that in quite periods a small lot size could have an affect. I would like to know what criteria i should use so i can code it into my EA.
I am also interested in views concerning this with multiple people using the same EA. If someone creates a really good EA and then either gives it away or sells it, you could easily end up with hundreds of people all doing the same trades. This could result in 100's of Lot's being bought at the same time, which would probably help move the price up, but then when they all try to close the trade at the same time, that could force the price down.
So anyone have any views?
Thanks