Questions from a "dummy" - page 231
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Hello gentlemen. I have, as usual, quite probably a silly question... Just recently, it wasn't even a question, but now, after talking with a very experienced uncle, confusion arose (((
MTS (mechanical trading system) and ATC (algorithmic trading system) are very different things?
It has been argued (by an experienced uncle) that MTS is a "great illusion" and algorithmic trading is cool. This is after a slight moral abuse, to me as a beginner, who turned out to be unaware of the fundamental differences between MTS and ATS... I'm not offended, but I don't understand what the difference is(((
Please explain in 2 words what are the fundamental differences.
Pesa: In particular uncle said that HFT is algorithmic trading but it's not MTS...
I personally do not distinguish between these concepts, if you pick on the words. then algorithmic is simply following a strategy (algorithm behavior), mechanical is using a trading robot, but then algorithmic will not be any different from regular trading by strategy
And I generally thought that ATC is an automatic trading system
The man is doing all the talking.
MTS and PBX are essentially the same thing.
HFT=AlgorithmicTrading=High Frequency Trading via MTS/PBX.
And we end up with A(vto)T(telephone)S(tation) for transmitting trade orders according to a given algorithm.
Something like this.
Personally, I do not distinguish between these concepts, but if you pick words, then algorithmic is simply following a strategy (an algorithm of behaviour) and mechanical is using a trading robot, but then algorithmic does not differ from ordinary trading according to a strategy.
And I generally thought of ATS as an automatic trading system
The man is engaged in chatterboxes.
MTS and ATC are one and the same thing.
HFT=Algorithmictrading=High frequency trading with MTS/ATS.
And we will end up with A(vto)T(telephony) for sending trade orders according to a given algorithm.
Something like this.
Please, explain to what extent the limit order placed at a certain price point will work differently than a market close order (or an order to the opposite side with the same volume) placed at the same moment?
Let us have two EAs, for example. They both open positions at point X, first EA takes a take profit at point Y and the second EA does not take a take profit, then let's assume the forecast was right and the price reaches point Y, also let's assume the forecast system of EA 2 received conditions to close the position entirely and an opposite order is sent and the first EA just has a limit set at that point. What could be the difference in slippage?
I want to know if I could theoretically (and practically...) trade only market orders without any Limit orders, so that the "Limits" are processed by the robot as opposite orders at a particular moment when the forecast system shows a probability (of a price movement in a profitable direction) below an acceptable threshold, rather than predefined price ones.
Please, explain to what extent the limit order placed at a certain price point will work differently than a market close order (or an order to the opposite side with the same volume) placed at the same moment?
Let us have two EAs, for example. They both open positions at point X, first EA takes a Take Profit at point Y and the second EA does not take a Take Profit, then let's assume the forecast was right and the price reaches point Y, also let's assume the forecast system of EA 2 received conditions to close the position entirely and an opposite order is sent and the first EA just has a limit set at that point. What could be the difference in slippage?
I want to know if it is possible theoretically (and practically...) to trade only market orders without any Limit orders, so that the "Limits" are processed by the robot as opposite orders at a certain moment, when the forecast system shows probability (of price movement in profitable direction) below the allowed threshold, rather than predefined price ones.
And to try it, by hand, at least on the demo,... in our business, everything has to be checked by yourself....
And to try it out, by hand, at least on a demo,... In our business, everything has to be checked by yourself....
If no one tells me, of course I'll try, the thing is that there's a lot of such small technical "what if?" and if I check everything "with my hands" I'll have no time and energy left to deal with really important issues concerning development of prognostic systems and capital management.
So I'm not asking out of laziness, but only because I'm sure I can get a quick answer to a technical question in order to start working on building the "core" of my trading strategy, instead of checking for 100500 technical "glitches" and inconsistencies.
There is a lot of similar information on the internet about limit and market orders, as well as about the possible differences in the results of their application.
Are you kidding me again? Firstly, I'm not asking about the "essence" of market orders, and about a specific situation that can only be checked on a real account, on the demo it's obvious that the results will be identical, this will happen on my computer, will not go anywhere and where will the difference in slippage come from? Secondly, I'm just the same "on the Internet" and ask, on the profile forum itself, in the section QUESTIONS FROM A DIRECTOR . If you for some reason are not motivated to respond, then have the conscience please, say nothing at least, or the courage to say directly, "I do not want to answer your question. Although perhaps you simply do not understand what I'm asking, since you sent on the Internet for the essence.
Don't be so snippy about it. Firstly, to get an answer to your question about your "specific situation", it is enough to understand the essence of the orders you mentioned, rather than the activity you are doing in real life. Secondly, when they say information on the internet, they mean search engines like Yandex or Google. Third, you do not have to teach anyone here how to answer questions in the "Questions from a Dummie" thread. If a dummie asks elementary questions, he or she will be politely reminded that the Internet contains a lot of similar information about the essence of limit and market orders, as well as about the possible differences in the results of their application. Try to put aside your fantasy about the "situation that can only be checked in real life" and do some basic reading on the Internet - in particular, search for information about possible differences in the results of the orders you need. If you are lucky enough to catch the essence of these orders and understand the differences - I will be glad to do it :)
papaklass:
Generally speaking, order execution is the prerogative of the broker, not the trading platform. Questions about order execution should be asked to the broker you are going to work with.
This is 100% true.
The theory is one thing but in practice you need to check with the technical support of the broker.