Looking for a UK trading buddy

[gle101]

I would agree but execution time matters very little when you're trading daily charts. I have tried to code for mt5 and it is fiendishly complicated whereas mql4 is a lot easier to learn and understand so that is the main reason for sticking with mt4.

The main problem with slow execution time is slippage, and I see this as a reason for many companies to stick with MT4 instead of offering MT5. I have been trading MT4 for many years but after migrating to MT5 I just don't want to go back to MT4. Yes, if you are a swing trader it might not be as important, but for many execution time is crucial and by reducing this you can save a lot of money.

 

[barneydunn]

The main problem with slow execution time is slippage, and I see this as a reason for many companies to stick with MT4 instead of offering MT5. I have been trading MT4 for many years but after migrating to MT5 I just don't want to go back to MT4. Yes, if you are a swing trader it might not be as important, but for many execution time is crucial and by reducing this you can save a lot of money.

I'm confused now. How does execution time have anything to do with slippage?

I would define execution time as the delay between clicking the buy or sell button and the order being placed. I would define slippage as being when a pending order or stop loss is filled at a worse price than you wanted.

I'm guessing what you mean is that if you are placing a market order and there is a 1 second delay in the order being placed leading you to getting a worse price then that would count as slippage?

That's not a problem if you only ever use pending orders and if you're targeting thousands of pips per trade then a few pips slippage here or there mean very little.

 

[gle101]

I'm confused now. How does execution time have anything to do with slippage?

I would define execution time as the delay between clicking the buy or sell button and the order being placed. I would define slippage as being when a pending order or stop loss is filled at a worse price than you wanted.

I'm guessing what you mean is that if you are placing a market order and there is a 1 second delay in the order being placed leading you to getting a worse price then that would count as slippage?

That's not a problem if you only ever use pending orders and if you're targeting thousands of pips per trade then a few pips slippage here or there mean very little.

Yes you are right, if you are targeting thousands of pips, slippage is not that important or spread for that matter. As you say bad execution can lead to more slippage if you place a market order, also execution of a stop loss order (limit order) as it converts to a market order when it is hit can cause slippage. I have not read the whole thread, but it appears that you got extreme long time frame in your trades. A very good strategy if it gives you consistent profit. I guess one have to be careful of heavy draw downs as the stop loss you place must be quite substantial.

 

[barneydunn]

Yes you are right, if you are targeting thousands of pips, slippage is not that important or spread for that matter. As you say bad execution can lead to more slippage if you place a market order, also execution of a stop loss order (limit order) as it converts to a market order when it is hit can cause slippage. I have not read the whole thread, but it appears that you got extreme long time frame in your trades. A very good strategy if it gives you consistent profit. I guess one have to be careful of heavy draw downs as the stop loss you place must be quite substantial.

I don't consider daily charts extreme but I suppose some would ;-)

I do place relatively large stop losses but if you keep it to a percentage of your account then the drawdown would be no different than any other strategy.

One thing about higher timeframes and larger stops is that your position size will be lower and you're taking less trades albeit shooting for more pips. The advantage though are that it takes up a lot less of your time. I think of it as get rich slowly and sustainably rather than make a bundle in a short space of time. It suits me better that way.

 

[gle101]

I don't consider daily charts extreme but I suppose some would ;-)

I do place relatively large stop losses but if you keep it to a percentage of your account then the drawdown would be no different than any other strategy.

One thing about higher timeframes and larger stops is that your position size will be lower and you're taking less trades albeit shooting for more pips. The advantage though are that it takes up a lot less of your time. I think of it as get rich slowly and sustainably rather than make a bundle in a short space of time. It suits me better that way.

Yes if one can get it to work it might be a more stress free trading environment. Probably require more capital in order to stay within a acceptable percentage of ones capital.

 

[barneydunn]

Still looking.

 

[barneydunn]

Is there actually anyone else who trades daily charts?

 

[canderwood]

Is there actually anyone else who trades daily charts?

Hi Barneydunn, I only trade daily charts these days, mainly because for me its more reliable, suits my current lifestyle and keeps me in the market longer.

I mainly trade FT 100 equities, the occasional FT 250 stock and if I'm looking to hedge my investment portfolio I'll take an index position or two. 95% percent of my trades are CFD's although I use Spreadbets for indices. Normally I have around 10 positions running at any one time, opening new ones as I either close existing positions out or move stops to BE+

Strategy wise I use a very simple momentum based approach, but do take advantage of pairs trades and other(s) when appropriate. (I use a couple of advisory services for these.)

I would be happy to share ideas and insights if you so wish.

Stu

 

[barneydunn]

Hi Barneydunn, I only trade daily charts these days, mainly because for me its more reliable, suits my current lifestyle and keeps me in the market longer.

I mainly trade FT 100 equities, the occasional FT 250 stock and if I'm looking to hedge my investment portfolio I'll take an index position or two. 95% percent of my trades are CFD's although I use Spreadbets for indices. Normally I have around 10 positions running at any one time, opening new ones as I either close existing positions out or move stops to BE+

Strategy wise I use a very simple momentum based approach, but do take advantage of pairs trades and other(s) when appropriate. (I use a couple of advisory services for these.)

I would be happy to share ideas and insights if you so wish.

Stu

Thanks Stu, you have a pm

 

[Pat494]

Hi Barney

I am newish to MT4/5.
Do you use an EA that is offered by them ? MT4 downloads have the advantage that one can access the code.

 

[barneydunn]

Hi Barney

I am newish to MT4/5.
Do you use an EA that is offered by them ? MT4 downloads have the advantage that one can access the code.

Hello Pat,

I have coded all my own indicators, scripts and ea's for mt4. I don't use an ea for entries but I find them more useful for trade management (trailing stops mostly).