VPS Benefit to cut down slippage

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I've an ea to helps me put an SL and pending limit order, with calculated lot size relative to SL distance,
since i trade on very small timeframe, i have to managed the SL distance range be small and tight as well, 

the issue is, when the price hit SL level alongside the slippage (or whatever it makes), it cost me 30% and above relative to my SL value,
even it's not news time, i often had bigger SL value than it should be at the regular market movement, eventhough not as much as the market volatile momentum like big impact news,

my question is, does vps can reduce that kind of slippage if i rent it? if so, how much the difference compared to my own local PC?

because we know our SL/TP and pending orders are in the broker side, so i wanna know if vps really helps or not
 
Nikobaby_: my question is, does vps can reduce that kind of slippage if i rent it? if so, how much the difference compared to to local PC?

A VPS can only reduce network lag and any slippage related to that.  It cannot reduce the price spikes or drops caused by high volatility or low liquidity. That is up to the market, not on connection speed to the trade server.

 
Fernando Carreiro #:

A VPS can only reduce network lag and any slippage related to that.  It cannot reduce the price spikes or drops caused by high volatility or low liquidity. That is up to the market, not on connection speed to the trade server.

So, the answer for my case is No, isn't it ?
 
Nikobaby_ #: So, the answer for my case is No, isn't it ?

Only you can answer that. You will have to analyse you trade details and logs, to see if there are network delays or not.

Analyse your connection ping times, as well as the any delays between order request and response.

Only now did I realise you are referring to pending orders and stops, not market orders. In that case, VPS will make no different what-so-ever.

It is up to your broker's "quality", the type of account, and the market conditions.

 
Fernando Carreiro #:

Only you can answer that. You will have to analyse you trade details and logs, to see if there are network delays or not.

Analyse your connection ping times, as well as the any delays between order request and response.

Only now did I realise you are referring to pending orders and stops, not market orders. In that case, VPS will make no different what-so-ever.

It is up to your broker's "quality", the type of account, and the market conditions.

exactly, i've mentioned only SL and pending order particularly from the beginning

ok then, there's no need to rent vps now,

thank you for your answer.


one more, you've mentioned depend on "type of account", how it can affect the execution speed?
 
Nikobaby_ #: one more, you've mentioned depend on "type of account", how it can affect the execution speed?

If the broker is reputable, then usually ECN accounts tend to be faster and get higher priority than normal accounts. But, you should check with your broker to see if that is the case, and it may also depend on the amount of capital you have in the account.

EDIT: They may also call the faster/priority accounts by a different name, so discuss it with your broker to find out.

 
Fernando Carreiro #:

EDIT: They may also call the faster/priority accounts by a different name, so discuss it with your broker to find out.


Nikobaby_ #:
one more, you've mentioned depend on "type of account", how it can affect the execution speed?

Some brokers call them "rasor" or "razer" accounts. other term might be "edge" or just simply "prime" or "pro".

But the prime or pro accounts tend to require a much larger deposit to open them.

Another term is "raw";

But I am sure that you could check the time it takes for your broker to react to price hitting your SL via code. There could be a script or ea in codebase for this purpose.

IMHO if it takes more than 700ms for your broker to "fill" an order or close an order at the SL, then, I would seriously consider closing that account and going to a different broker.

EDIT or if the price that the broker closes at, is more than 10 points in losing side of that SL, and this happens 1 out of 3 trades, then, same thing: i would close that account.

 
Fernando Carreiro #:

If the broker is reputable, then usually ECN accounts tend to be faster and get higher priority than normal accounts. But, you should check with your broker to see if that is the case, and it may also depend on the amount of capital you have in the account.

EDIT: They may also call the faster/priority accounts by a different name, so discuss it with your broker to find out.

oh ECN, i thought it would be something else,

never expect different account type would give different execution time priorities,
 
Michael Charles Schefe #:

Some brokers call them "rasor" or "razer" accounts. other term might be "edge" or just simply "prime" or "pro".

But the prime or pro accounts tend to require a much larger deposit to open them.

Another term is "raw";

But I am sure that you could check the time it takes for your broker to react to price hitting your SL via code. There could be a script or ea in codebase for this purpose.

IMHO if it takes more than 700ms for your broker to "fill" an order or close an order at the SL, then, I would seriously consider closing that account and going to a different broker.

EDIT or if the price that the broker closes at, is more than 10 points in losing side of that SL, and this happens 1 out of 3 trades, then, same thing: i would close that account.

absolutely, since my SL distance was very tight, even it just several points away, it would be very costly when my position is not closed at the desired SL level and go beyond it, 
so i have to do some tests related to execution time, on MT5 i can monitor the journal tab, in order to see how long the order would takes in milliseconds

thankyou for the advice
 
Nikobaby_ #:
absolutely, since my SL distance was very tight, even it just several points away, it would be very costly when my position is not closed at the desired SL level and go beyond it, 
so i have to do some tests related to execution time, on MT5 i can monitor the journal tab, in order to see how long the order would takes in milliseconds

thankyou for the advice
reputable brokers will give refunds if you contact them within 24 hours, however, if this happens often, then, you will not know how many more trades that they have done this to, and you have not noticed. i have closed 3 broker accounts in past due to this reason, and those brokers are considered to be the among the most reputable brokers "in the world".
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