Discussion of article "Extract profit down to the last pip" - page 31
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Scalping on a weekend: low liquidity, spreads an order of magnitude higher than usual.
10 April 2020 was a holiday in the markets of many countries. However, forex continued to function, albeit with extremely low liquidity and spreads 5-20 times higher than usual.
Very wide spreads and scalping seem incompatible. Reality destroys this unreasoned myth a bit.
Earlier it was said about algo-trading in a storm. The same rules can work in the anti storm - a day off. Therefore, I will tell you about the differences.
Spread
In a storm there is increased volatility. On the weekend - on the contrary. So why giant spreads may not be a hindrance to profitable scalping?
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Discussion of the article "Scraping out the profit to the last pip"
fxsaber, 2019.09.06 10:44 AM.
Spreado mania is so popular as it is easy to understand. You actually have to look at the potential profit. That's what the article did.
I can double the average spread in a custom symbol, and the TS will show the same result or better.
Similarly, I can reduce the average spread by half and the TS will show the same result or worse.
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How do you screen out a giant spread?
fxsaber, 2018.10.17 00:16 pm.
The opening spread has nothing to do with the closing spread. Even veiled spread is not used anywhere.
For example, you need to make a BUY. You will do it on Ask. What does it matter what Bid is equal to at that moment?! The same situation on closing.
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How do you screen out a giant spread?
fxsaber, 2018.10.17 01:36 pm.
No matter how much the spread widens (Bid goes down or Ask goes up), it has no effect on the trading signals.
The logic is as follows: if Ask drops to the required level - BUY, if Bid rises to the calculated level - SELL.
Moreover, any TS should have such logic. And it doesn't matter what spread was during the trading signal.
So there is no need to be afraid of the spread. It is desirable that it is not present anywhere in the TS at all.
Exchange (centralised market) VS Forex (decentralised market).
Architecturally, these two types of market are fundamentally different. They have their pros and cons. And it is the decentralised market model that shows its advantages at the weekend.
Forex has analogues of exchanges (for example, LMAX). Paradoxically, it would be much more difficult to make a profit on such a platform on the weekend, because the sliding of limit orders is zero.
Limit order sliding
On a decentralised (aggregators/darkpools) market, limit orders, unlike on an exchange, can give slippage. Trading on the weekend on the sites where limit orders allow negative slippages is not allowed. Because the risk of getting minuses with low liquidity is huge.
Therefore, it is not just desirable, but obligatory to choose a platform where limit orders give either re-jacks or are executed partially/completely, allowing positive slippages.
In the chart above, the blue line is profit in pips. The red line is minus slippage. The chart shows that the slippage was positive. It is especially large on a weekend day - in this case it exceeded the broker's commission six times.
10 April 2020 was a holiday in the markets of many countries. However, forex continued to function, albeit with extremely low liquidity and spreads inflated by 5-20 times.
Very wide spreads and scalping seem incompatible. Reality somewhat destroys this unreasoned myth.
Amazing! Thanks for the information.
fxsaber:
The logic is as follows: if Ask drops to the required level - BUY, if Bid rises to the calculated level - SELL.
Thank you, you really change the view. This is not a fight against spread. Besides, in limit order strategies, the spread can be a plus))))
After trading on MT5 there is no desire to support trading on MT4. On the locked MT4 account trading has been stopped long ago and will hardly be continued. Let's consider that the exibition session has fulfilled its purpose.
There are some monitoring of trading on the article from other people. I am finishing with the public/hip on this direction.
At the moment all information is freely updated in the sources mentioned here, what and where is being traded now, in what volumes and with what result.
I wish good luck to everyone who joined.
After trading on MT5 there is no desire to maintain trading on MT4. On the locked MT4 account trading has been stopped long ago and will hardly be continued. Let's consider that the session of exibitionism has fulfilled its task.
There are some monitoring of trading on the article from other people. I am finishing with the public/hype in this direction.
At the moment all information is freely updated in the sources mentioned here, what and where is being traded now, in what volumes and with what result.
I wish good luck to everyone who joined.
These conclusions are sad, but we will have to take into account....
it turns out 1000$ per month.
and the salary of a programmer in America, for example, 10 000$ per month.
trader is a beggar)
10 000 for 10 months earned.
it turns out to be 1000$ per month.
and the salary of a programmer in America, for example, 10 000$ per month.
trader is a beggar).
You should not be so obviously envious.
1. In 9 months.
2. Not every programmer in America gets 10000 per month (and taxes how much?).
3. It was one account made for demonstration. And how many other accounts (and noticeably larger) there were and are, we can only guess.
You shouldn't be so obviously jealous.
1. In 9 months.
2. Not every programmer in America gets 10000 per month (and how much tax?).
3. It was one account made for demonstration. And how many other accounts (and noticeably larger) there were and are, we can only guess.
I mean that this strategy does not tolerate large deposits. 10-30 thousand dollars. further trading conditions change. positive slippages decrease.
I have not seen anyone who works on this strategy with large deposits. everyone has a couple of thousand.
in Moscow everyone gets 1000$ a month. everyone. regardless of speciality.
And here you need to be the best trader to have 1000$ a month (because only 0.1% of traders earn money in trading).
here is a person who increased his deposit 50 times, from 200 to 10000. again he will not be able to increase it 50 times - from 10000 to 500000.
you can't earn a million here.
so what's the point of such trading?