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There are so many systems like this..all scalp during low activity period when market dont move much...and during this period spread is likely to increase....market don't care about your little pos...if broker move price for your little order..Big shark will eat them with Big orders
Understanding Market working is important
Yes, EOD is the best for me. I just looking 11:00 p.m. and 7:00 a.m. Thats all and about 1000 pips every month. Thats enough for me. With metatrader EAīs I canīt sleep really good.
Well what I don't understand is you ask them before opening an account if scalping is allowed, they will say yes. Then you do it and make money, which is the purpose of trading anyway, then they increase the spreads.
This is like saying yeah we allow you to swing trade, but if people keep doing it we'll raise the commissions.
We need to move to an ECN. The only way around it. That's what I'm gonna do, I'd rather pay a commission with tight spreads, than no commission and a "fixed" spread. Fixed my arse..
Scalping is matter of time not matter of price. Scalping is what e.g. Linuxtroll does - jump in and during 5-10 sec jump out. It is what retail brokers hate. This system is about something other.
There's a problem with this theory, though. Take your example of FXPro. During the holidays, their spread increased--no big deal, most brokers do that. After the holiday, their spreads went back to normal for the majors. Their EURGBP spreads are still very low during active trading hours.. However, during the quiet "scalping" hours, EURGBP goes up to 5 pips while the major pair spreads remain low.
Is the credit crunch only affecting EURGBP? That doesn't make any sense.
Quote:
Originally Posted by fxhst329
no, the spreads on the interbank market have not changed because of the scalpers. they've increased because of credit crunch and in retail brokerages... there are many reasons and this system is one of them. I was on the phone with the guy from FXPRO and I've asked about scalping. He told me that if people keep doing it, they'll just increase the spreads. They're simply loosing because of systems like these under current market conditions. So retails have to increase the spreads, institutional brokers... they don't really care about the system... they have different problems now...
Is the credit crunch only affecting EURGBP? That doesn't make any sense.
Agree, your broker is your enemy, they hate you if you get profit, and they love you if you get loss.
Why they only increase spread on EURGBP, because this EA work on EURGBP, and it's profitable, I wonder if this EA work on others pair and distribute for free, they also will find the way to anticipate it (wide spread, requotes etc..)
There's a problem with this theory, though. Take your example of FXPro. During the holidays, their spread increased--no big deal, most brokers do that. After the holiday, their spreads went back to normal for the majors. Their EURGBP spreads are still very low during active trading hours.. However, during the quiet "scalping" hours, EURGBP goes up to 5 pips while the major pair spreads remain low.
Is the credit crunch only affecting EURGBP? That doesn't make any sense.
not not only eurgbp... all pairs are affected mostly during asian session... if you check out the feed on institutional platforms... HotSpot, Currenex, Lava, BaxterFX... they all have increased spreads on all currencies at that hour. btw... eurgbp spread is like 5-10 on these platforms... so with retail brokers you're still "good" simply if brokerage makes profit... they can allow some profits to be made on such systems, but if some pair becomes major issue for them or particular strategy... they will do whatever so they don't loose on this. look... if they offer 2 pip spreads on EURGBP... for normal traders it's fine... they can cover bunch of asian session trades, but not so many... then they start loosing on this, because true interbank market prices are totally somewhere else and if they do it on their books internally... you still make them loose because strategy makes profit. so spread increasing is their solution to this.
someone mentioned above something about big boys or something like that... it's not really that easy... imagine some brokerage lowering spreads on EURGBP to 2 pips now... now almost every single EURGBP scalping system trader would open live account with such brokerage in a matter of week. Do you realise how much capital is it? I'm also IB and I had clients with several millions on their accounts interested to trade similar systems. Now let's say you have 2mil account. Given 10% risk level set in EA it would open 200 lots per position. Now this wouldn't even be possible in retail brokerages as they limit size mostly to 50 lots per position. Well... let's say out of all people who trade this system let's say we have 5 people like this (if there is a population of 2000-3000 people on all this world who know about this system and trade it...5 bigger accounts aren't that much). Anyway... so let's say we have hypothetical 10mils what would be 1000 lots with 10% risk... now imagine such brokerage giving you spreads of 2 pips if all rest of the market... banks, financial institutions and other entities are refusing to give you other side smaller than range of 5 pips... now such retail brokerage would only count on the fact that you loose and they trade against you...and since strategy makes profit they loose... they can't go out on the market and buy/sell because they simply can't go out to the market and buy/sell it to someone with 2 pip spreads... simply said price isn't there where they need it to be. bids and asks are somewhere else... so they lay off a day in loss. it's very simply explained...it just doesn't work for most of retail brokers.... most of the trades in retail brokerages even don't go out to the real market... if you post a loss of $1000 it's their profit,because they hedge position. if they want to go out to the market... then they have to be in such market that is able to provide such conditions as they give you and under current market conditions they can't give it to you. so they raise spreads as with such spreads they will not post losses, they will go directly to interbank market and buy/sell there...so good spreads is just a part of marketing... sometimes they're just not able to meet them so they increase them.
anyway back to what I was saying... now imagine such brokerage selling/buying 1000 lots of eurgbp on a regular basis during most quiet period of day in the world's biggest financial crisis. you know... there has to be another side as well.. and if it's just several bigger insitutions that brokerages have agreement with or that are active on the market... it's not that easy to find buyer/seller of 1000 lots at a price you want. if they would do this... they would only loose on such transactions...simply they give you 2 and get it for 5... since there are not that many participants... why would same quoters give you better price if they know they will loose on such trade right away in several seconds? so if there is less market participants... there is simply less bids/asks and usually they are further from current price...
now if you would all think that FX is really huge and big boys are selling millions of lots, it's not true. anything above 500 lots isn't as simple as with 5 or 50 lots. Imagine someone buying/selling 1000 lots of eurgbp on a constant basis... that's like 14,000 per pip on EURGBP.... one TP and someone is down like 70k... now do the calculations... this many lots will make someone loose like $3mil per month, this is without moneymanagement...you've seen the results... this system is capable of making 50% month or more.... it's been traded for a while... so I don't know... same couple of banks won't give you better prices just so they loose.... it's a good system and with such success rate and bigger volume you might even piss off bigger guys.. just go to your broker and ask them how would it work out if you would want to execute 1000 lots per trade... they won't even give you chance and direct you straight to institutional feed and charge you the commissions...and what will you get there? do you think you will be able to buy/sell during all market conditions full volume of 1000 lots at a price you want... if Dresden bank will buy/sell from you 300 lots, Deutsch 400 @.23 and at last UBS 300 @.24 @.27... this is a position you will have to manage and on closing you will get the same... if there are not that many players around this becomes a mess and small spreads just don't fit into this so such brokerage simply has to increase the spreads so the meet demand/supply and can come out good out of this...
nobody wants to borrow now, everybody wants to settle down transaction asap, what leaves less room for better prices outlook.
it's a lot of toughts here and a lot of it makes sense... system might work but it will not as if it would under normal market conditions. everybody willing to take a risk of experimenting this live... you should know you're doing it at your own risk... system just doesn't work with large spreads...
Coincindence?
. I heard american brokers are together in this mission. Donīt let us profit!! 
,i will send you some money,you are a great guy rdb,may god bless you
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