Day Trading & Forex Forum

littlemog

Seriously, this thread is as alive as a dead fish. Can someone tell me where to go for some lively serious discussion about systems trading, instead of questions all day long that go like 'Can mechanical trading make $$$$$?!?!?!'

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"I have no special talents. I'm just passionately curious." - A.Einstein

ahardy66

The system traders are too busy worrying about their slippage to discuss anything. Well, this one is.

And what is there to discuss anyway?

How about this: is it cheaper to trade interbank forex or forex futures? And how do you work it out?

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Adam

littlemog

I think I'm asking in the wrong place... oh well.

anyway, it's hard to say which is cheaper for your question. I'll probably go with futures given that for spread and interest on rollover it's going to cut less deeper than interbank. that valid?

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"I have no special talents. I'm just passionately curious." - A.Einstein

GammaJammer

Depends on whether you only factor in explicit costs or whether you also look at stuff like legging risk, opportunity cost etc. It's not a hugely straightforward question to answer once you start doing that. People spend a lot of time on this stuff.

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"That which doesn't kill me makes me stronger"

FXCode

Truth is most people who really know how to develop trading systems, and I mean REALLY know, not just mega-optimizing the entire world into their strategy.. They won't talk.

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Michael,
MT4 EAs Developer

ahardy66

Aaah, but we hav vays ov making you talk.

Mechanical systems are admittedly difficult, but deep down, everyone knows there is an algorithm out there waiting to be discovered, that will sell the high of every bar and buy the low.

Oh whoops I've been reading too many trade magazines again.

littlemog: try the trading blox forum. 50% oriented towards trading blox software discussion though. but it's also not nearly as active. maybe someone moderates it and just deletes the kind of chaff like you see here.

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Adam

AyePee

I would suggest it depends on your size.If you are doing small, I would use the futures market in the more liquid pairs (AUDUSD, EURUSD, CADUSD, CHFUSD, GBPUSD, JPYUSD). As a former forward FX trader, I can tell you that we made a truckload of free money doing overnight and short term FX rolls for clients. If we were making that money, the client is paying it.

In the futures, you only have to cross the spread on the way in and the way out. It is usually a point or two......not much. If you hold a spot FX position for 3 weeks, you have to pay the spread on the roll 15 times......I can tell you that the guy on the other end of that is happy to see you!

I say stick with the futures until volume becomes an issue for you. Then, go to the interbank market as you can get more done.

Any thoughts?

AP

littlemog

aye thanks for pointing that out. i think no one can disagree that systems are difficult, else we'll have seen more chatter and interest than talk about head and shoulders or whatever. i think i was just a bit angsty the other night.

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"I have no special talents. I'm just passionately curious." - A.Einstein