FIXED SPREAD BANDITS

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chris_phs
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Postby chris_phs » Tue Oct 28, 2008 2:04 am

TheRumpledOne wrote:MB Trading has MT4 in it's future.

I have 3 live feeds, one being MT4.


Can you expound on this? Do you know for certain they will offer MT4, such as being told by someone at MB, and could you speculate as to when?

Thanks.

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Postby BlowFish » Wed Oct 29, 2008 2:38 pm

Anyone have recommendations for a bookie *cough* that offers MT4 with reasonably clean data with a decent history? I'd really like 'volume' (which isn't really volume but changes in quoted volume) that would be cream. If they offered a few favourite commodities that would be cherry and nuts on the top.

TRO (or anyone else) who do you use for MT4 charts? I guess you have tried a couple.

Incidentally imho the fixed spreads is just the tip of the iceberg that can rock your boat. The fact the bookie is the counter party, they know where they have orders on there books (limits and stops) and they can make up prices as it suits them....well what else do you need to say.

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Postby deeforex » Fri Nov 07, 2008 3:44 am

Conceptually I understand this. However when it comes to trading it on MB Trading with the same results, I can't do it nor can I SEE it.

How does one Sell at Bid and Buy at Bid? I know we're suppose to enter LimitOrders and not market orders. Do I set the TP when I'm setting up the Limit order? Or do I get out of the Sell (after it's been triggered) with a Buy order? I'm used to the mt4 platform so this is really foreign to me.

I would eventually like to trade with MBtrading. I'm just struggling with the platform. Is there anyone here that has mastered their platform that would care to give me some pointers how you acutally scalp effectively?

TheRumpledOne wrote:I trade with www.efxgroup.com

They are an ECN. THERE IS NO FIXED SPREAD IN FOREX. Tell them THE RUMPLED ONE sent you.

You can google and find out what I really think about "FIXED SPREAD BANDITS".

I'll leave it at that so I don't get banned.

How do I avoid the spread?

I explained this to someone yesterday in an IM.

With EFX you pay a commission rather than having a "FIXED SPREAD".

It's "apples and oranges" so don't try to compare. "THE MATRIX HAS YOU" and you need to "FREE YOUR MIND" to understand what I am about to explain.

Let's say the current bid/ask is 1.5010 x 1.5015

The current spread is 5 pips.

You want to SHORT.

You SHORT at 1.5010.

You set a TP at 1.5005.

Bid/Ask becomes 1.5005 x 1.5009 and the current spread is 4 pips.

At EFX, you will get filled if the bid is 1.5005 and someone TAKES your offer.

Bid/Ask is now 1.5004 x 1.5009 and YOU HAVE YOUR PROFIT.

Note: the ASK never reached 1.5005. THIS IS IMPORTANT!

If you entered this order at a FIXED SPREAD BANDIT, whoops I mean broker, your order is STILL OPEN!!

The bid/ask must become 1.5000 x 1.5005 and your order HITS the Ask.

DO YOU GET IT?

If not, then read this over and over and over again until the LIGHT BULB goes off!!

The day I found out about EFX is the day I opened an account there and stopped trading with FIXED SPREAD BROKERS.

The simplest thing to do is to load up a demo account at EFX Group and see it with your own eyes.

When you place your TP Bid offer at 1.5005, your bid is displayed on Level II.

The point is with EFX your offer gets hit.

With FIXED SPREAD BROKERS you have to wait to hit their offer.

Maybe this might help:

First:

1.5010 x 1.5015

and price drops...

1.5009 x 1.5014

1.5008 x 1.5013

1.5007 x 1.5013

1.5006 x 1.5012

1.5006 x 1.5011

1.5005 x 1.5011 You may get hit

1.5005 x 1.5010 You may get hit

1.5004 x 1.5009 YOU COVERED 5 PIP GROSS PROFIT

AND LET'S CONTINUE

1.5003 x 1.5008

1.5002 x 1.5007

1.5001 x 1.5006

1.5000 x 1.5005 YOUR FIXED SPREAD BROKER FILLS YOUR ORDER.

Does that make it clearer??

What about the commission cost?

The commission varies depending on the pair trading.

It is $.50 per 10k minilot on USDJPY. So if I gross 2 pips, I am making money.

From the EFX site:


Commission Rates

Fixed spreads are a way for FCMs to markup or markdown the best bid or offer. FCMs do this to hide their fee into the price of the currency pair instead of displaying their best quote. Common sense tells you that no one works for free, so when you see an FCM claim they have ?no commission?, that should be a red flag. So how are they getting paid? Its simple: they are making money with the built-in markup/markdown in the spread.

Our FCM, MB Trading Futures, has nothing to hide. They offer tighter spreads with no markups/markdowns and openly display a low commission rate.

Commissions are based on total dollar amount traded: $5 per $100,000 traded.



Remember, tell EFX that THE RUMPLED ONE sent you

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TheRumpledOne
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Postby TheRumpledOne » Fri Nov 07, 2008 11:21 pm

IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Question?

Postby theperfectsun » Sun Nov 09, 2008 6:57 pm

This is what you have written:

With FIXED SPREAD BROKERS you have to wait to hit their offer.

Maybe this might help:

First:

1.5010 x 1.5015

and price drops...

1.5009 x 1.5014

1.5008 x 1.5013

1.5007 x 1.5013

1.5006 x 1.5012

1.5006 x 1.5011

1.5005 x 1.5011 You may get hit

1.5005 x 1.5010 You may get hit

1.5004 x 1.5009 YOU COVERED 5 PIP GROSS PROFIT

AND LET'S CONTINUE

1.5003 x 1.5008

1.5002 x 1.5007

1.5001 x 1.5006

1.5000 x 1.5005 YOUR FIXED SPREAD BROKER FILLS YOUR ORDER.


I don't understand one thing:

With let's say some other broker you have BID and ASK the same, the spread is the same:
1.5010 and 1.5015. You hit limit order on Mb trading at 1.5005 ok? I hit instant execution on my broker-fixed spread bandit.
We both get filed right away, so much I have learned when you make a limit sell under current BID price you get filled right in with MBtrading. (This might be good for news time).

So as you explained what happens. Price reaches 1.5005 and 1.5010. We both are covered, except you have to pay the commission, right?

We have TP at 1.5005. Than means when ask hits that line we take our TP.
I see the catch is here: with MB trading your TP gets executed when bid comes to 1.5005( ask is at 1.5009 as you said) so you take 1 pip profit?

Because on my broker the ask needs to come down to 1.5005 for me to take 5 pips. But I can close the order manually at ASK 1.5010(1.5009) and make 1 pip as well?

So where is the difference. You have made 1 pip - commission and I have made 0 or 1 pip, because my broker uses a fixed spread.

Please enlighten me, thanks!
thank you

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Re: Question?

Postby androfx » Sun Nov 09, 2008 7:25 pm

theperfectsun wrote:This is what you have written:

With FIXED SPREAD BROKERS you have to wait to hit their offer.

Maybe this might help:

First:

1.5010 x 1.5015

and price drops...

1.5009 x 1.5014

1.5008 x 1.5013

1.5007 x 1.5013

1.5006 x 1.5012

1.5006 x 1.5011

1.5005 x 1.5011 You may get hit

1.5005 x 1.5010 You may get hit

1.5004 x 1.5009 YOU COVERED 5 PIP GROSS PROFIT

AND LET'S CONTINUE

1.5003 x 1.5008

1.5002 x 1.5007

1.5001 x 1.5006

1.5000 x 1.5005 YOUR FIXED SPREAD BROKER FILLS YOUR ORDER.


I don't understand one thing:

With let's say some other broker you have BID and ASK the same, the spread is the same:
1.5010 and 1.5015. You hit limit order on Mb trading at 1.5005 ok? I hit instant execution on my broker-fixed spread bandit.
We both get filed right away, so much I have learned when you make a limit sell under current BID price you get filled right in with MBtrading. (This might be good for news time).

So as you explained what happens. Price reaches 1.5005 and 1.5010. We both are covered, except you have to pay the commission, right?

We have TP at 1.5005. Than means when ask hits that line we take our TP.
I see the catch is here: with MB trading your TP gets executed when bid comes to 1.5005( ask is at 1.5009 as you said) so you take 1 pip profit?

Because on my broker the ask needs to come down to 1.5005 for me to take 5 pips. But I can close the order manually at ASK 1.5010(1.5009) and make 1 pip as well?

So where is the difference. You have made 1 pip - commission and I have made 0 or 1 pip, because my broker uses a fixed spread.

Please enlighten me, thanks!


MB never take a trade against you - they just pass the trade to interbank market and if it is between current interbank market spread it will be filled.

Everybody can sell or buy at the same time. You are offering a price, somebody has to take it. Extreme would be - you can sell at ask-1 and buy at bid+1 and if the spread is wide enough, price fluctuations not too wide, you are quick enough and there is enough liquidity - you can make money doing this (probably not possible with retail brokers).

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Postby deeforex » Sun Nov 09, 2008 7:25 pm

I've watched MB Tradings webinars twice and I still don't see how a TTO will allow me to Sell & liquidate (Buy) with a Bid price. I will watch for the 3rd time. Maybe the 3rd time is a charm and the mystery will get unlocked.

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Postby theperfectsun » Sun Nov 09, 2008 7:27 pm

I have watched them too and I am not blind. I didn't see that as well. I might go with Ducascopy, at least they are reliable.
thank you



Good luck to you all!



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Re: Question?

Postby TheRumpledOne » Tue Nov 11, 2008 4:53 am

theperfectsun wrote:I don't understand one thing:

With let's say some other broker you have BID and ASK the same, the spread is the same:
1.5010 and 1.5015. You hit limit order on Mb trading at 1.5005 ok? I hit instant execution on my broker-fixed spread bandit.
We both get filed right away, so much I have learned when you make a limit sell under current BID price you get filled right in with MBtrading. (This might be good for news time).

So as you explained what happens. Price reaches 1.5005 and 1.5010. We both are covered, except you have to pay the commission, right?

We have TP at 1.5005. Than means when ask hits that line we take our TP.
I see the catch is here: with MB trading your TP gets executed when bid comes to 1.5005( ask is at 1.5009 as you said) so you take 1 pip profit?

Because on my broker the ask needs to come down to 1.5005 for me to take 5 pips. But I can close the order manually at ASK 1.5010(1.5009) and make 1 pip as well?

So where is the difference. You have made 1 pip - commission and I have made 0 or 1 pip, because my broker uses a fixed spread.

Please enlighten me, thanks!


Please post a detailed description like I did. I do NOT understand what you are talking about or asking.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

theperfectsun
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Postby theperfectsun » Tue Nov 11, 2008 8:03 am

Ok Tro, Dragon explained it to me on babaypips.com
For me, there is no difference if your broker, does not have slippage.
thank you



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