fiberangel wrote:I have tried both market and limit, each has its own pluses and minuses. I was just stating for other readers that market orders with MBT may be problematic.
Market orders are just that: market orders. If you don't restrict the broker in any other way, you never know which price you finally get.
I'm thinking about writing a sample C# script for NeoTicker that would test the viability of using limit orders for FPI position creation. Obviously, it's not that easy as saying "get me this or better price for this FPI position":
- limit orders are not guaranteed to be executed. If you're left with an incomplete FPI ring, that's more risk than having one of the positions entered off the FPI price
- all other factors being equal, the only correct price for a position in an FPI ring is the calculated one. Prices above or below are both worse. This is one of the main differences between FPI and plain trading.
EXACTLY. That's the problem I was facing with Limit orders. Even after I implemented slip threshold, I still would get a canceled order once in a while which is even riskier than having an order filled at a market price.
All in all, to me it looks like setting the system to trade with market orders is fairly safe and still profitable. I just accept the slippage as a fact of life when running FPI system on MBT, it may lessen the profit, but it still works.
Another thing is why do you think that moving to the live server will only increase slippage? I've researched the topic a little and I don't 100% think that it will be only worse.