Edge/Spread

[meanreversion]

It's a good post, but let me throw some overlooked phrases/words into the melting pot.

"Tangible"

"All things being equal"

So if there are two identically informed, intelligent, motivated and disciplined traders, with the same access to information and technology, and one has to cross bid/ask, and the other doesn't ...... who's going to make more money?

If that's the question, isn't it a bit silly, or did I miss something?

 

[oildaytrader]

All things considered, is having no spread to pay probably the biggest tangible edge that a trader could want?

Old farts hanging around forums always feel they have an edge, but do these farts really have an edge?

Spread edge counts for zero if trader gets delayed execution.oL FART gets filled in a crap market and never gets filled in a trending highly profitable market, or gets filled on low profitable days.

Just another fart thinking he has an edge.

O D T

 

[counter_violent]

Old farts hanging around forums always feel they have an edge, but do these farts really have an edge?

Spread edge counts for zero if trader gets delayed execution.oL FART gets filled in a crap market and never gets filled in a trending highly profitable market, or gets filled on low profitable days.

Just another fart thinking he has an edge.

O D T

Eh :!:

 

[kimo'sabby]

So if there are two identically informed, intelligent, motivated and disciplined traders, with the same access to information and technology, and one has to cross bid/ask, and the other doesn't ...... who's going to make more money?

If that's the question, isn't it a bit silly, or did I miss something?

You are missing something. You are disregarding your own trading logic because we are talking about 1 pip and not 100.

 

[William Waller]

William (all past posts aside) my broker does not explain it's position on margin, it explains comms/financing, but not margin.

Why is this?

OK, not something I've ever looked into. I beleive US brokers cannot offer above 100:1 leverage by law on Forex (althouh this might not be correct).

 

[kimo'sabby]

Old farts hanging around forums always feel they have an edge, but do these farts really have an edge?

Spread edge counts for zero if trader gets delayed execution.oL FART gets filled in a crap market and never gets filled in a trending highly profitable market, or gets filled on low profitable days.

Just another fart thinking he has an edge.

O D T

What are you on about?

 

[oildaytrader]

Eh :!:

What I mean is execution is more important than spread, there are brokers offering better execution and lowest spreads.

I could go to interactive brokers and get partial fills on $5m lots , whereas I get instant fills on full $5m at quoted spread.Which is better in a trending market?

 

[kimo'sabby]

OK, not something I've ever looked into. I beleive US brokers cannot offer above 100:1 leverage by law on Forex (althouh this might not be correct).

If you were a broker, what would you logically base your margin rates on? Remember, you don't want people owing you money at the end of the day.

 

[kimo'sabby]

Slippage? Out of one hundred trades, how many miss your entry? I guarantee that not many on here really know the answer.

 

[kimo'sabby]

Who's give my thread a very poor rating? It wouldn't be the same person with all the answers would it?

 

[Bollo57]

Err, I read recently on another post that if all spreads were zero, a high percentage of traders would still fail. Maybe there's some truth to that. Dunno. I guess, ultimately, if you're trading in a longer timeframe, a spread of a couple of pips ain't gonna make a huge difference. If, on the other hand, you're scalping at 100 pips/ point, it's very important. If you're short, and the markets long.......a few pips ain't the problem.

 

[kimo'sabby]

Err, I read recently on another post that if all spreads were zero, a high percentage of traders would still fail. Maybe there's some truth to that. Dunno. I guess, ultimately, if you're trading in a longer timeframe, a spread of a couple of pips ain't gonna make a huge difference. If, on the other hand, you're scalping at 100 pips/ point, it's very important. If you're short, and the markets long.......a few pips ain't the problem.

Buy and hold types can never get their heads around the 'no spread' arguement. Maybe it takes to much concentration, who knows?

How many of your trades slipped in the last month? How many trades did you make?

Answer me this in an honest fashion mate.

Let's look at slippage.

 

[meanreversion]

I keep a detailed record of ALL my trades, dates, times, entry points, slippage and so on. My system is fairly low frequency (fewer than 20 trades a month) so the bid/ask I am crossing is not material.

I get slippage on some stops, and year to date, total slippage is just under 2 pct of my total equity.

But I refer to an earlier post -- it's impossible to have zero slippage on all your stops, by definition. Thus it's a case of trying to keep it as low as possible, however I have no control over how the market moves BUT I can keep the number of trades down.

Sorry - but this thread really is a bit daft, it's almost as bad as the "can you turn 5k into 1mio within 3mths" thread......

 

[Bollo57]

'sabby, asked you a question on another post. Anyway, I ain't a buy n hold. Actually, the opposite. Yeah, suffer from occaisional slippage, so it is a problem the way I trade. I just put it down to 'one of those things' we suffer in our chosen profession. I, too, remember , the days whenwe had 7-11 points spread, poor connections, getting stopped out, etc., maybe I'm wrong, but I accept things are now so much better for us, a slightly more even plsying field, and, well, unfortunately accept some slippage.

Actually, Thursday night, thinspreads had a problem closing trades!! Was the wrong end, had to phone, lost even more than I wanted, but had to close them. Then, 20 minutes later, the usual happened. They went my way. BUT, couldn't hold them if I couldn't close them. So that's extreme slippage mate.

 

[kimo'sabby]

'sabby, asked you a question on another post. Anyway, I ain't a buy n hold. Actually, the opposite. Yeah, suffer from occaisional slippage, so it is a problem the way I trade. I just put it down to 'one of those things' we suffer in our chosen profession. I, too, remember , the days whenwe had 7-11 points spread, poor connections, getting stopped out, etc., maybe I'm wrong, but I accept things are now so much better for us, a slightly more even plsying field, and, well, unfortunately accept some slippage.

Actually, Thursday night, thinspreads had a problem closing trades!! Was the wrong end, had to phone, lost even more than I wanted, but had to close them. Then, 20 minutes later, the usual happened. They went my way. BUT, couldn't hold them if I couldn't close them. So that's extreme slippage mate.

I'm sorry mate, but if you are referring to Finspreads, then i can't take you seriously on the subject of slippage.

 

[arabianights]

Earning the spread is the biggest edge you can give a trader with any strategy that doesn't involve holding for months.

Anyone who thinks otherwise is a ****tard.

I love earning the spread. It pays for **** reduction surgery.

 

[wackypete2]

No spread is unarguably the biggest and best edge you can ever find, utopia would be no comms and no spread.

This is a ridiculous statement. Even with no comm and no spread 90/95% will still lose becasue they have not figured out HOW to win. Would they still be in Utopia if they lost?

IMO, being a disciplined trader offers a much bigger edge than no spreads/comm.

Lower spreads and comm rates are better of course, but the best edge you will ever find is within yourself. Figure out what it takes to be a winner (in trading and life) and you won't care about the spread or commissions.

Peter

 

[hustlerscreed]

ha ha the thing is to beat the spread and make money. thats the goal of every trader. but the goal of winniers is to call the exact top and bottoms of dayly trends. i am that winner my friend and it feels good.

but all b.s aside either you win or you dont.

if you want to run with a winner join my skype room im creating

 

[counter_violent]

but the goal of winniers is to call the exact top and bottoms of dayly trends. i am that winner my friend and it feels good.

This should be good.

Any chance you can post some charts showing how you call instrument exact tops and bottoms...cheers

I assume you mean in advance ?


if you want to run with a winner join my skype room im creating

.

 

[hustlerscreed]

.

sure my friend, This is how its done :whistling

check the picture