capitalspreads
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fx winner
Funny how facts disappear out the window sometimes.
as you well know you have been winning very large sums for two years. Hardly the 'when you are winning and get to a certain size Capital Spreads dont want to know' . Your size with us has remained pretty constant throughout most of that period. Just because we slip ONE trade you get all 'i'm being persecuted'. As you also know, but have not bothered to mention, we corrected the 'slip' yesterday.
Run the numbers
The point about trading strategies which are not mathmatically based is that if too many people start to act on them then they become self defeating because enough 'market makers' get to know where orders are as well. If you are putting orders of £30m at a certain price every day and you place the orders through 8 brokers then the 8 brokers get to know what you are doing. They see that your strategy is successful and start to do the same thing (they may tell their mates as well) then loads of copycats come in and add their orders to these levels as well This swiftly adds up and the numbers get to £150m, £200m or more at a 'known level' then this becomes a worthwhile amount for the MM to hunt down.
As FXwinners mentions there are plently of differing strategies (fibs pivots trends momentum etc etc etc) but the point about them is that one mans fib point is not always the same as someone else. pivots momentums etc depend upon what period you are looking at. One dealer might like the 5 day moving ave vs the 20 day the dealer sitting next to him might prefer 3 day vs 15 day.
We certainly do not act against any clients, winning or otherwise. nearly all trades (especially in equities indices and commodities) just go straight through no matter what the size. FX tends to bring out the scalpers so we are more careful there. FXwinners is not a scalper at all, as he places orders to be activated and (because he is a consistent winner) we then place orders to cover his positions. If he wins we win if he loses we lose. There is no 'size' issue involved at all. If he put £1000 a point with us we would just leave £19.5m orders in the market. The point about slippage is that the bigger the order the bigger the chance of slippage. And if there is a large accumulation of orders at a certain price then the chances of slippage increase again
To move sterling a pip generally takes about £30M (£1500 a point) if MMs (because of previous experience) know where a sell/buy order for £100/200M is.Then when the market gets close to the triggers they will be tempted to hunt for them.
Simon
Funny how facts disappear out the window sometimes.
as you well know you have been winning very large sums for two years. Hardly the 'when you are winning and get to a certain size Capital Spreads dont want to know' . Your size with us has remained pretty constant throughout most of that period. Just because we slip ONE trade you get all 'i'm being persecuted'. As you also know, but have not bothered to mention, we corrected the 'slip' yesterday.
Run the numbers
The point about trading strategies which are not mathmatically based is that if too many people start to act on them then they become self defeating because enough 'market makers' get to know where orders are as well. If you are putting orders of £30m at a certain price every day and you place the orders through 8 brokers then the 8 brokers get to know what you are doing. They see that your strategy is successful and start to do the same thing (they may tell their mates as well) then loads of copycats come in and add their orders to these levels as well This swiftly adds up and the numbers get to £150m, £200m or more at a 'known level' then this becomes a worthwhile amount for the MM to hunt down.
As FXwinners mentions there are plently of differing strategies (fibs pivots trends momentum etc etc etc) but the point about them is that one mans fib point is not always the same as someone else. pivots momentums etc depend upon what period you are looking at. One dealer might like the 5 day moving ave vs the 20 day the dealer sitting next to him might prefer 3 day vs 15 day.
We certainly do not act against any clients, winning or otherwise. nearly all trades (especially in equities indices and commodities) just go straight through no matter what the size. FX tends to bring out the scalpers so we are more careful there. FXwinners is not a scalper at all, as he places orders to be activated and (because he is a consistent winner) we then place orders to cover his positions. If he wins we win if he loses we lose. There is no 'size' issue involved at all. If he put £1000 a point with us we would just leave £19.5m orders in the market. The point about slippage is that the bigger the order the bigger the chance of slippage. And if there is a large accumulation of orders at a certain price then the chances of slippage increase again
To move sterling a pip generally takes about £30M (£1500 a point) if MMs (because of previous experience) know where a sell/buy order for £100/200M is.Then when the market gets close to the triggers they will be tempted to hunt for them.
Simon
although to me it sounds as though it could be a case of Jimmy Radcliffe ..... 
