Metatrader bucket shops

[oildaytrader]

random entries have always been and continue to be profitable for me, but then again, having spent the last 6 or 7 years doing this as a full time occupation, I actually know what Im doing

When are you going to publish this method or strategy, Heck I could put a few million on it and make billions.

We await the release of Random BS by Zupcon

Coin tossing and random entries @ Forex Factory

OILDAYTRADER

 

[zupcon]

When are you going to publish this method or strategy

I'm not, work it out for yourself

 

[Jason Rogers]

I know about the above.I was thinking more of an ready coded API , where users just insert account number , signals for entry , filters ,t/p,s/l and indicator values.Traders would not have to code more on their API

OILDAYTRADER

I've seen programs such as this where you can do basic stuff such as, when two moving averages cross enter a trade, buy/sell at overbought/oversold levels, buy/sell when price touches bollinger bands, etc. The FX Trek Intellicharts subscription charting package has this. Basic stuff. The problem is that to add any sort of uniqueness or complexity to your strategy for competitive advantage you'll need to code it yourself, or pay another programmer to code it for you. If you need help programming FXCM has consulting services.

 

[oildaytrader]

random entries have always been and continue to be profitable for me, but then again, having spent the last 6 or 7 years doing this as a full time occupation, I actually know what Im doing

Is it the commercial system where you make royalties?

OILDAYTRADER

 

[insight2]

I would like to express my utmost respect for oildaytrader and him taking the stand against the broker. He really did a good service to this forum and its members, by stepping forward and trying to protect our collective interest. We are truly talking about David and Goliath relationship here. So much so, that the broker in question has a paid member of his stuff to put the right spin on, in a case anybody complains about their underhanded practices.

 

[oildaytrader]

I would like to express my utmost respect for oildaytrader and him taking the stand against the broker. He really did a good service to this forum and its members, by stepping forward and trying to protect our collective interest. .

Insight

Thank you.I am a trader and have no commercial interests on the forums.

I opened an account with two metatrader brokers , expecting the brokers were transperent in their dealing.I ran demo accounts versus live accounts for 6 months , and regularly found material differences between demo performance and real performance , real accounts performed poorly ,whereas demo accounts performed highly profitably.

One of the brokers disappointed me, and I complained publicly about their fictitious FIXED SPREADS , spreads that resulted in many non fills on entries and exits.The broker has now gone to variable spreads.I wasted six months of my time , only to realize the broker's practices were costing me my profits.I spent a lot of time and money trying to figure out the bucket shop tactics.

I hope many more traders will fight for honest trading services.

Here is more to understand these brokers:

Dealing desk brokers

http://www.trade2win.com/boards/forex-brokers/75944-dealing-desk-brokers-avoid-them.html

STP

http://www.trade2win.com/boards/forex-brokers/75962-s-t-p-brokers-equal-ecns-retail-traders.html

ODT

 

[insight2]

I am doing some broker research and I found this possibly useful list of FX brokers that are using dealing desks (human or software) v. truly honest ECN brokers:

Forex Factory - View Single Post - Bucket Shops in Forex

I would like to say that any broker offering MetaTrader free software should be approached only with utmost caution. Whatever such a brokers tells you, he is most likely using infamous Virtual Dealer by Meta Trader's developer Boston Technologies that is specifically made to introduce artificial slippage, delay the execution and generally enable such an broker to surreptitiously extract money from your account each time you enter a real trade.

 

[Jason Rogers]

I would like to express my utmost respect for oildaytrader and him taking the stand against the broker. He really did a good service to this forum and its members, by stepping forward and trying to protect our collective interest. We are truly talking about David and Goliath relationship here. So much so, that the broker in question has a paid member of his stuff to put the right spin on, in a case anybody complains about their underhanded practices.

Hi insight,

I wouldn't call providing a thorough explanation on how the virtual dealer plugin works and why a broker would want to use it spin. In fact, not providing the information does a disservice to the community in understanding it, which is why I detailed the information in my original post here. Only now in recent posts is a distinction being made on fixed spread vs. variable spread brokers.

As explained in my original post, a dealing desk broker has a natural conflict of interest because your loss is their profit. Therefore it is in their best interest for you to lose. Every trader needs to do due diligence to understand this distinction. Not all brokers work as an adversary. In a no dealing desk (STP) setup, the trades are hedged back to back with a bank or financial institution thereby eliminating the conflict.

On the subject of demo vs. real accounts. A demo account is useful for learning the operations of a platform, but it does not simulate slippage since orders are not executed against actual liquidity. Important to take note of this when judging the performance of a strategy.

Jason

 

[oildaytrader]

Jason

General question about all brokers.

Should there be any requotes on STP execution , market orders?

O D T

 

[Jason Rogers]

Jason

General question about all brokers.

Should there be any requotes on STP execution , market orders?

O D T

Hi O D T,

If the broker is using STP then there should not be requotes. Second, if the broker is using STP there should also be no restrictions on how close you can place stops, limits, and pending orders.

Restrictions on stops and limits occur with DD brokers. This occurs because bank spreads are variable, while DD broker spreads are normally fixed. Therefore, if a bank provides a 5 pip spread and the DD broker is guaranteeing a 2 pip spread, the DD broker will lose 3 pips on each trade. To mitigate this risk, restrictions on orders may be imposed. If the DD broker chooses a restriction of 5 pips then they have mitigated their risk to 7 pips (5 pip restriction + 2 pip spread). Unless bank spreads widen past 7 pips, the DD broker is protected. During news events and volatile markets bank spreads can easily widen beyond this amount, which is why DD brokers may heighten restrictions when the market is likely to move.

Another thing to keep in mind with MT4 is that the broker can specify the execution setup as either Instant Execution or Market Execution. With market execution, all orders are executed as true market orders filling at the best price available. With instant execution, all orders are submitted are similar to fill or kill orders. The maximum deviation option allows you to increase the range of prices you're willing to accept .

FXCM uses market execution in order to integrate MT4 with our no dealing desk execution.

Jason

 

[oildaytrader]

Hi O D T,

If the broker is using STP then there should not be requotes. Second, if the broker is using STP there should also be no restrictions on how close you can place stops, limits, and pending orders.


Jason

I agree entirely with you , unfortunately Alpari who claim to be STP execution has requoted so many times over the last few months.

The lack of transperancy is annoying when traders are trying to do serious business on FX.

O D T

 

[insight2]

so basically, broker can use MT4 either in DD or SDT mode and us trades can only find out which mode MT4 is in after opening the account and placing 10-20 trades?

Is there a way to find out in which mode an FX broker is using MT4, without opening the account and trading live?

 

[oildaytrader]

so basically, broker can use MT4 either in DD or SDT mode and us trades can only find out which mode MT4 is in after opening the account and placing 10-20 trades?

Is there a way to find out in which mode an FX broker is using MT4, without opening the account and trading live?

Read reviews on the internet , search for information on dissatisfied clients.

http://www.forexfactory.com/showthread.php?t=5450

 

[oildaytrader]

I would like to express my utmost respect for oildaytrader and him taking the stand against the broker. He really did a good service to this forum and its members, by stepping forward and trying to protect our collective interest. We are truly talking about David and Goliath relationship here. So much so, that the broker in question has a paid member of his stuff to put the right spin on, in a case anybody complains about their underhanded practices.

The broker advertising dollars are worth more if I get banned for exposing brokers.My days are numbered!

I hope you understand why.

O D T

 

[Jason Rogers]

so basically, broker can use MT4 either in DD or SDT mode and us trades can only find out which mode MT4 is in after opening the account and placing 10-20 trades?

Is there a way to find out in which mode an FX broker is using MT4, without opening the account and trading live?

There are some things you can look for in the demo account to give you an idea whether the broker uses DD or NDD/STP execution.

1. Pending Order / Stop Loss / Take Profit restrictions. A dealing desk broker will create restrictions on how close to the current market price you can set a pending order, SL, or TP. An NDD/STP broker will not.

2. Fixed Spreads are offered by dealing desk firms. Spreads with an NDD/STP broker will be variable since the best bid/ask price from multiple banks is being streamed onto the platform.

3. Regulations in some countries require the broker to explain how orders are offset. The NFA in the United States and ASIC in Australia are two that come to mind. You can read the trading agreement of any broker and it will give details on the execution method.