Signal slippage: what happens if the slippage is too high?

[John Dowe]

Hi, 

Example: in Tools - Options - Signal - Deviation/Slippage is set to 1 Spreads

The signal provider opens a position. What happens, if the slippage is higher than 1 spreads?

1) the position is not opened on my account and will never be opened afterwards.

2) the position is not opened at the moment, but MQL checks every X seconds again if the slippage criteria are met. If so, the position opens on my account X seconds later.

Thanks for clarification.

[Sergey Golubev]

It is what I found from here: https://www.metatrader5.com/en/terminal/help/signals/signal_subscriber

Deviation/Slippage [C] spreads — this setting is similar to deviation set when orders are placed from the platform. This is the value of the permissible deviation of the executed order price from the price initially requested by the platform when copying a trading operation. This value is displayed as a part of the current spread on the symbol used in trading operation.
The order is executed if the deviation is less or equal to the specified parameter. If the deviation exceeds the specified value, the platform increases the acceptable deviation by 0.5. If the requote is received again, the accounts of the subscriber and provider become unsynchronized.
Later the platform will retry to synchronize them.

[John Dowe]

Sergey Golubev #:

It is what I found from here: https://www.metatrader5.com/en/terminal/help/signals/signal_subscriber

Deviation/Slippage [C] spreads — this setting is similar to deviation set when orders are placed from the platform. This is the value of the permissible deviation of the executed order price from the price initially requested by the platform when copying a trading operation. This value is displayed as a part of the current spread on the symbol used in trading operation.
The order is executed if the deviation is less or equal to the specified parameter. If the deviation exceeds the specified value, the platform increases the acceptable deviation by 0.5. If the requote is received again, the accounts of the subscriber and provider become unsynchronized.
Later the platform will retry to synchronize them.

Thanks Sergey.

So in that case it makes sense to choose a low slippage setting for the signal.

Even if the order is not executed because of too high slippage, the platform will retry later.

[Fernando Carreiro]

John Dowe #: Thanks Sergey. So in that case it makes sense to choose a low slippage setting for the signal. Even if the order is not executed because of too high slippage, the platform will retry later.

If it retries later, price will have deviated anyway, so it will be the equivalent of having had slippage.

The only way to reduce slippage, is to have a good broker and a low latency network connection to both your broker AND the signal provision service.

[Mr David Frederick Roberts]

Fernando Carreiro #:

If it retries later, price will have deviated anyway, so it will be the equivalent of having had slippage.

The only way to reduce slippage, is to have a good broker and a low latency network connection to both your broker AND the signal provision service.

What happens if your spread is consistently zero, as mine often is?  The slippage will always be greater than this - it would be so much more sensible to offer the slippage setting in points, I would have thought!