How Does Execution Delay Impact Scalpers with Tight Stop Losses as Providers?

[M. Irfan]

Considering the potential delay in investor accounts, the stop loss set at 100-200 pips on the provider’s account could be hit faster on the investor’s end. This happens due to execution differences caused by delays, even if the provider's analysis has accurately identified the market’s power movement.

Also, what would be the ideal minimum stop loss size for a provider to ensure that investor accounts are less likely to hit the stop loss due to execution delays?

 What’s your take on this?

[Ryan L Johnson]

M. Irfan:

Considering the potential delay in investor accounts, the stop loss set at 100-200 pips on the provider’s account could be hit faster on the investor’s end. This happens due to execution differences caused by delays, even if the provider's analysis has accurately identified the market’s power movement.

Also, what would be the ideal minimum stop loss size for a provider to ensure that investor accounts are less likely to hit the stop loss due to execution delays?

 What’s your take on this?

I would say, forget playing "guess the stop price" and instead, open an account with the same broker-dealer and data feed as your trading partner. If you still have high latency afterward, upgrade your internet service or get a proximate VPS.