An interview with highbury fx

This is a discussion on An interview with highbury fx within the Spread Betting & CFDs forums, part of the Commercial category; Originally Posted by joseph1986 highbury, thanks for taking the time to answer questions. My question relates to volume. In relation ...

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Old Dec 9, 2016, 3:54pm   #46
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Originally Posted by joseph1986 View Post
highbury, thanks for taking the time to answer questions.
My question relates to volume. In relation to the rare amazing traders what is the frequency of days they trade? I've come to conclude if you trade every single day the house always wins (just like a casino). I've figured at best you get about 16/20 days the rest (maybe more) are completely random....june 2016 is a perfect example of several random days. My other question is what are the characteristics of these amazing traders in terms of trading the first hour of market open? Do they open their positions right away or wait? Lastly on days like the last 3 days where markets shot straight up.....with no end in sight for a pullback...do you notice anything strange the next day in the first few hours?
Hello Joseph

These ' rare amazing traders' tend to sit in their positions for much longer than intraday traders. they will have a position open most of the time. Unlike an intraday trader they wont be so sensitive on spread but they will pay more in rollover costs. they don't tend to concentrate on dealing on opens but they will have a position on for the open.

don't notice anything strange anymore, I've come to expect the unexpected and to look on the down side more often than the upside.
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Old Dec 9, 2016, 5:51pm   #47
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Hello Joseph

These ' rare amazing traders' tend to sit in their positions for much longer than intraday traders. they will have a position open most of the time. Unlike an intraday trader they wont be so sensitive on spread but they will pay more in rollover costs. they don't tend to concentrate on dealing on opens but they will have a position on for the open.

don't notice anything strange anymore, I've come to expect the unexpected and to look on the down side more often than the upside.
So let me ask you this , does your previous reply to darktone's questions also applies to long term/position traders ?
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Old Dec 12, 2016, 9:59am   #48
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So let me ask you this , does your previous reply to darktone's questions also applies to long term/position traders ?
i want all types of traders.

we'll be able to make money out of every client we have but wont necessarily want to continue providing services for some traders once we have evaluated their style. long term position traders aren't worth much to me in terms of spread but they are a valuable group of clients.
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Old Dec 13, 2016, 10:48am   #49
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Those traders that are profitable over time are they (mostly) trading

1) stocks
2) stock indices
3) commodites
4) forex
Hi Kalott

During 2016 our clients done best in Commodities, followed by Indices and then FX.
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Old Dec 13, 2016, 11:45am   #50
 
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Hi Kalott

During 2016 our clients done best in Commodities, followed by Indices and then FX.
Interesting that that is practically the inverse order of spreads - traders seem attracted like moths to the candle to fx because of the spreads available.

In my opinion, more seasoned traders with deeper pockets tend to take longer term trades where spreads are wider (ie commodities), as spreads are not the main consideration for the attraction to the instrument.

PS thanks for all your input highburyfx - I've learned a lot about the business from the brokers end which helps my own perspective.
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Old Jan 19, 2017, 3:10pm   #51
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Hi HighburyFX,

I trade with a Straight Through Processing broker using MT4 and experience a lot of 'off quotes' messages in the log when entering market orders and closing orders. Their Tech Support have told me this is caused by the Liquidity Provider not accepting my price.

Is this something to do with 'Last Look' by the LP?

Can you expand on what exactly 'Last Look' is all about?

Thanks
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Old Jan 19, 2017, 5:40pm   #52
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Hi HighburyFX,

I trade with a Straight Through Processing broker using MT4 and experience a lot of 'off quotes' messages in the log when entering market orders and closing orders. Their Tech Support have told me this is caused by the Liquidity Provider not accepting my price.

Is this something to do with 'Last Look' by the LP?

Can you expand on what exactly 'Last Look' is all about?

Thanks
Hi Leemo

STP (A book) brokers will hedge wherever the market is then add their minimum capture and fill their client.

B book brokers will approve trades that have moved from the execution price within a set tolerance. That tolerance is the difference between where the deal was trying to be done and where the price is now. You need to take a 'last look' at the live market to determine whether the trade can be executed within the permitted tolerance.

It sounds like you're doing a bit of scalping during big moves and failing the tolerance limits. Your STP broker will be able to explain to you what their tolerance is which will allow you to decide whether to accept it and stay or move to another STP broker and get all your deals done albeit at levels you may not be profitable at.
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Old Jan 19, 2017, 7:18pm   #53
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Hi Leemo

STP (A book) brokers will hedge wherever the market is then add their minimum capture and fill their client.

B book brokers will approve trades that have moved from the execution price within a set tolerance. That tolerance is the difference between where the deal was trying to be done and where the price is now. You need to take a 'last look' at the live market to determine whether the trade can be executed within the permitted tolerance.

It sounds like you're doing a bit of scalping during big moves and failing the tolerance limits. Your STP broker will be able to explain to you what their tolerance is which will allow you to decide whether to accept it and stay or move to another STP broker and get all your deals done albeit at levels you may not be profitable at.
I believe the tolerance you mentioned above is the 'deviation by default' on the MT4 platform. I have that set to a ridiculously high number so that my trades can be filled. I'm generally looking to make 30 points on dax cfd so not really scalping, by my definition. Still a lot of trades don't get filled. Very frustrating
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Old Feb 7, 2017, 2:21pm   #54
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I now know why I had so many rejected orders.

http://www.zerohedge.com/news/2017-0...tly-banned-nfa
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Old Feb 8, 2017, 11:01am   #55
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Hi Leemo

STP (A book) brokers will hedge wherever the market is then add their minimum capture and fill their client.

B book brokers will approve trades that have moved from the execution price within a set tolerance. That tolerance is the difference between where the deal was trying to be done and where the price is now. You need to take a 'last look' at the live market to determine whether the trade can be executed within the permitted tolerance.

It sounds like you're doing a bit of scalping during big moves and failing the tolerance limits. Your STP broker will be able to explain to you what their tolerance is which will allow you to decide whether to accept it and stay or move to another STP broker and get all your deals done albeit at levels you may not be profitable at.
Seems like FXCM's definition of 'last look' is for the Liquidity Provider to determine whether the initial move is for or against them. If against, then don't allow the trade. FXCM will give this LP lots of business in return for kick backs.

This is an amazingly crooked business One way or another the broker takes the other side of the trade, whether DD or STP
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Old Feb 10, 2017, 1:29pm   #56
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Seems like FXCM's definition of 'last look' is for the Liquidity Provider to determine whether the initial move is for or against them. If against, then don't allow the trade. FXCM will give this LP lots of business in return for kick backs.

This is an amazingly crooked business One way or another the broker takes the other side of the trade, whether DD or STP
No wonder the share priced went down by more than 50% on 7/8 Feb!
So they mot only have pissed off the clients bu also investors!
and people are taking class action! Good on CFTC for taking such an action
Silver lining is they have not gone out of business and clients will have their money intact becasue with FXCM being an FCM there was no SIPC protection in USA !
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Old Feb 11, 2017, 3:07pm   #57
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It seems the Straight through processing brokers have plenty of scope to manipulate the odds to their advantage, using underhand tactics.

Got to be ECN type execution going forward
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