1 pip difference between live and demo - page 2

omelette
784
omelette  

MiniMe, so you're saying that say, broker 'xxx' is quoting a 2 pip spread, you end up always paying 3 pips to them - or just sometimes? In other words, is this 1 pip slippage guaranteed? I know it's been said repeatedly that demo and real quotes differ but I'd be very interested if others with real accounts could confirm your observations. I'd also be interested to know the identity of 'xxx' as I'm still looking for the 'perfect' MT broker.

MiniMe
2125
MiniMe  
omelette:
MiniMe, so you're saying that say, broker 'xxx' is quoting a 2 pip spread, you end up always paying 3 pips to them - or just sometimes? In other words, is this 1 pip slippage guaranteed? I know it's been said repeatedly that demo and real quotes differ but I'd be very interested if others with real accounts could confirm your observations. I'd also be interested to know the identity of 'xxx' as I'm still looking for the 'perfect' MT broker.

It has nothing to do with the broker, its the way forex works.

Live account will only be filled when there is someone to respond to your qoute, so trying this with some bizar pairs will give you more than 1 pip, I am trying this with the normal currency pairs and its almost 90% of the times you will find a 1 pip on your order and 1 pip on your take profit/stoploss.

Changing the broker will not change anything, you need to see it by your self, as I said make a 20$ live account and setup an EA on both live and demo and do the test, there days and you will end up with big difference.

and if you are using scalping EA then its even worse, the difference is going to be very big, cause then you count on small pips to make profit.

-----------------------------------------

Today I setup another live account with 50$ to test it with my original live account, and guess what ... I have just got a couple of trades and there is a delay between orders, the small account with the 50$ hit stoploss before my orginal trading account and the orders are filled later than the original account ... so far they both trade in the same way but there is a obvious delay, I will keep them both running for a while and see the results.

lexygoo
39
lexygoo  
MiniMe:
It has nothing to do with the broker, its the way forex works. Today I setup another live account with 50$ to test it with my original live account, and guess what ... I have just got a couple of trades and there is a delay between orders, the small account with the 50$ hit stoploss before my orginal trading account and the orders are filled later than the original account ... so far they both trade in the same way but there is a obvious delay, I will keep them both running for a while and see the results.

Nope, I would not say that "it is the way forex works"!

It is the way Metatrader/Metaquotes works to give the brokers another edge in making money from our deposits. In most cases the only winner in the end will be the broker. For example, say that we have 2 traders. 1 trader buys and the other trader sells at round about the same time, so that there orders are matched (afterall forex is meant to be a zero sum game).

Now, let's say that bought traders have a 15 pip stoploss which both get hit (on a news release like yesterdays FOMC minutes). Where has all that money gone???

lexygoo
39
lexygoo  

Minime, the only suggestion I can give you is to try to adapt the EA you are using to the live environment, this way you can try to remove this edge that the MT4 broker has.

Remember, that your MT4 broker is not a charity. They need to make money - your money!

So, I wish you success in trying to overcome this.

MiniMe
2125
MiniMe  

I am doing fine even with the 1 pip difference I was just testing an EA with a small part of my account, I do most of my trades manually.

But this is unfair for traders, and no one said anything about it, I heard lots of stories about EAs that does well on backtest and on demo but when used on live account it fails... it seems that is a major reason why, personally I used to test at least one EA per month, now I know it’s a waste of time.

Believe me the difference is big, you will see it in the first three days and it grows up.

You don't even have to try this, go to any broker web site and chat with them and ask them the same question, why on the demo account the orders are being filled while on live account the orders are not being filled ? you will end up with the same answer I got on the first post.

I am not sure if this is only with MT4. but if it is then I must change my broker.

[Deleted]  

It sounds like requotes and slipagge to me...

Try to change the slipage in the EA to 0 or 1...

testern
51
testern  
slope:
It sounds like requotes and slipagge to me... Try to change the slipage in the EA to 0 or 1...

I would not suggest this. Changing slippage to 0 or 1 will mean that you may not get filled at all, and so you may find yourself missing profitable or (unprofitable) trades.

Don Steinitz
411
Don Steinitz  

If you are being filled later then sooner wouldn't make sense that the market price could equally be a better fill? If there is no cheating then hypothetically it is randomn when you get filled and the market price could be lower, same or higher.

MiniMe
2125
MiniMe  
steinitz:
If you are being filled later then sooner wouldn't make sense that the market price could equally be a better fill? If there is no cheating then hypothetically it is randomn when you get filled and the market price could be lower, same or higher.

When placing an order on a live account, it doesn't mean that the orders has to be filled !!! it only means you want to make a trade at this price, if there is a buyer/seller then the order will be filled else the order will hit the price without being filled. This is more clear when you trade on ECN.

When using demo or backtests we assume that the orders will ALWAYS be filled, but this is not true.

[Deleted]  

something doesnt seem right here. meta trader brokers need to match buyers with sellers? thats BS. Minime my impression of the chat transcription is that the customer service rep for this broker, does not know jack diddly why there was a one pip differance, if the "we need to match buy with seller" excuse is the best he could come up with, to get u off his back. brokers arent supposed to match buyers with sellers only ecn's do this, and they can do it because they have such vast volumes of order. but brokers dont do that when u buy brokers are the ones that sell to u, and vice versa. the way brokers are supposed to make money is from the spread itself. THERE IS NO NEED FOR BUYERS AND SELLLERS AND BANK ITS THE CRAP META TRADER BROKERS. they are getting paid on the spread and then ripping u off one pip on ur entrance and exit and thats the truth. only ecns match orders.