Quote:
Originally Posted by tdion
Pipguard I see you are relatively new here and I gathered from your posts that you are not completely familiar with the retail forex business model. Get on the phone and call any retail forex dealer, and ask them if your trades actually enter the forex. The answer is always "we take the risk." That means all orders are hedged against each other, and outstanding orders are put into the real market with a reverse trade. Stats show the majority is at a complete disadvantage due to their lack of knowledge, greed (400:1 leverage is there to arouse newbies,) and finite capital (the psych-out after losing a huge chunk of the account)
By the way, ATC Brokers (to Hotspot) and MBTrading offer native MT4 interfaces to ECNs, so there is no need for a 3rd party bridge.
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Your probably right here, but I thought you were saying something totally different bordering criminal behavior. They still profit from the spread so I'd like to know what "risks" their taking? I'm relatively knew to forex, you are right, but I'm not new to trading. I've been involved in markets for 10 years and I know commission is their real bread and butter. Any "risks" they take in trading is outside the company charter as far as I'm concerned.
I have visited hotspot and see that they are working with MT4 but they have one of the highest minimum account balance requirements around.
ECN's I think is our ticket to getting away from bucket shops. The problem you and I are discussing is about a broker closing your account or prohibiting trading. Too me that's denying service. They should return his money.
Of course we don't know everything that is involved, there might be a legitimate mechanical problem. Maybe he was scalping to the extreme, 1 pip every 2 minutes or something? But criminal behavior must not be tolerated from our end. Stealing is stealing. Also maybe his broker isn't regulated.
Thanks for your input.
About the EA and changing price action, I think this EA is based on changing price action. It tests profitably back to 1999, that's pretty robust. You want a trading system to do well with over 1000 trades for it to be robust.
Spreads and volatility is where the damage comes in, with that I agree with you. In the future the asian hours might start being volatile, this ea operates in a ranging environment.