Hi SImon,
it's not just FX there seems to be problems with generally, and I wonder if you would be kind enough to give your thoughts on the following:
Over the last three or so weeks, I have been following a new intraday method for the Dow Jones (I have used the June contract). I have been having one chart from yourself open (3 mins), a chart from IG, and one with an eSignal feed. Even though not actually trading, I have also had a trading ticket open with yourself. I observe with dire regularity that your prices seem to be 'lagging' at the extremes, even in slow periods. Here is an example (!) that clarifies:
I notice the price at 900, sell at that. Slowly, the price is coming down, and I settle on a target of 875.
The price on IG and eSignal feed hits 880, yours is still at 883.
The price on IG, etc drops to 876, then 874, then 873. Your is showing 881, then 878, then 876.
Three things can happen now: 1. The price climbs back up a little, say to 878, you stay at 877, or 2. the price holds on at 873, you slowly get steady on 874, or 3. the price declines futher and the whole process continues.
To futher tilt this, your trade ticket seems out of sync with your own charts, i.e. also sometimes lagging a pip or two. In the above example, when the price was at 873, your chart showing 876, your trade ticket would most likely show 877.
In ex. 1 and 2, I would be holding on, waiting for your price to come in line with the underlying market, but never getting my fill.
In ex. 3, I would get my fill, though above what I should have (or, indeed, I might still wait for you to follow suit to get a better buy-back).
You might rightly argue that this would had been an advantage if I was in a buy situation, but as this alwasy happens around peak prices / range top or bottoms, it would not, as I would be near the low of the bar.
I know you do not like the word bias, but intentionally or not, this does tilt the whole game away from the trader.
To forego another possible counter argument, if I may, no, I cannot simply trade 'against' your delayed prices as we are only talking a few pips at most, always within your spread (either it would be eaten by your spread, or I would get Expired on price). It simply just 'chops' away at profits.
It does prompt a few questions:
1. What if I were to call up and state that the underlying price was at 875, but you never gave better than 877? Somehow I doubt that would be a viable argument.
2. If I had a limit at 875, would it be hit as the underlying market was there, but your prices not? If yes, the same must presumably go for a SL, which would hardly be fair as I could never trade at that price with you. If no, I would not get my fill. Neither outcomes are satisfactory.
I have, as said, been following this over some three weeks, and we are not talking about flukes or fast market, but a rather consistant pattern.
I do not think this is a connectivity issue, as the other feeds come through fine, and I am on broadband.
If still in doubt, just try pulling up a 1, 5, or 10 min chart and compare your peak bar prices (highs in rising market, lows in falling market) to that of the underlying instrument. They are very often short of a few pips.
For some time, I thought it was just your charts that were not fast enough to register the fast moves, but it seems to go deaper than that.
I do not want to start the old arguments about either bias or SB in general, but these are - specific - matters of some concern, as I am sure you will appreciate, and I would like your comments on them.
All the best...
CJ