Brokers against very profitable robots?
Hi, Any ideas on this?
>>>my thought. dont they make money on spreads instead? the loser is the buyer/seller at the other end, not the broker. am i correct? if i am correct, then that EA ad statement is flawed.
Ok, let's say you "buy" from me.
You're long, I'm short.
I close my trade, you keep yours open.
Now, who holds the "other side" of your trade?
>>>my thought. dont they make money on spreads instead? the loser is the buyer/seller at the other end, not the broker. am i correct? if i am correct, then that EA ad statement is flawed.
Ok, let's say you "buy" from me.
You're long, I'm short.
I close my trade, you keep yours open.
Now, who holds the "other side" of your trade?
phy do you have any idea which brokers are good back testing the EA strategy.
Thx
>>>my thought. dont they make money on spreads instead? the loser is the buyer/seller at the other end, not the broker. am i correct? if i am correct, then that EA ad statement is flawed.
Ok, let's say you "buy" from me.
You're long, I'm short.
I close my trade, you keep yours open.
Now, who holds the "other side" of your trade?
If #1 is correct, meaning that the broker can lose when our robots win, does the brokers do those actions in #2? That is, do they do actions targetting the concerned robot?
Is this a known fact in robots, and we should add the necessary codes to our EAs to avoid detection/identification?
If #1 is correct, meaning that the broker can lose when our robots win, does the brokers do those actions in #2? That is, do they do actions targetting the concerned robot?
Is this a known fact in robots, and we should add the necessary codes to our EAs to avoid detection/identification?
I personally don't think that it's limited to EA's. I often times place a trade right before the EU Market opens.
Check out this screen shot I took. Can anyone confirm that this happened or not? Otherwise, my broker altered the price by over 700 points to hit my stoploss...
Hrm guess I did have fapturbo on... but I've been able to "reproduce" anomolies and refuse to trade until I get a different broker.
Unless you do something really wrong or are using a commercial EA with the original name, nothing will happen. Short of MT4 sending the whole EA source code, file hash, or whatever to the broker and the broker analysing to see if it's FAP Turbo for example, the brokers have no way of knowing what it is you're running.. but even those could be manipulated so you become "stealth" at no disadvantage.
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This said, I think most of the people talking about this are a little bit paranoid. The fact that they don't know *exactly* what is going on on the other side (broker) they estimate a guess and end up believing it after they repeated it enough times. What probably happens is that EA's that scalp really fast are frowned upon because too much of them would hammer their servers with enough clients. Other than that, there's never been any concrete evidence and it just sounds to me like a slot machine player who thinks the machine has something against him personally. Of course, if the brokers truly are playing with your money because you are running an EA, we'll never have any concrete evidence of it. Why trouble yourself with something out of your control?
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Jon
Check out this screen shot I took. Can anyone confirm that this happened or not? Otherwise, my broker altered the price by over 700 points to hit my stoploss...
Jason,
I looked at two different brokers and saw that same low swing. The low-point was different with each broker, but it was clearly a market driven move. I'm with Jonathan. I don't tend to believe most of the hype about brokers intentionally manipulating the market price to make false profits at your expense. Who knows, maybe I'm wrong, but not in this case.
- Tovan
One point we can add is:
What are the 'related' things that the broker can legally do:
1. change spread.
2. close your account.
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I read a couple of points on an advertised EA, regarding brokers and robots.
It says something like this:
1. brokers lose if you win. that is why they frown on very profitable robots.
>>>my thought. dont they make money on spreads instead? the loser is the buyer/seller at the other end, not the broker. am i correct? if i am correct, then that EA ad statement is flawed.
2. because of #1 above, when numerous traders use the identified very profitable robot, the brokers DO make actions like:
-- increase spread during hours that the identified robot trades
-- close your account
-- disable your orders from getting filled
-- etc.
apparently, the EA's ad mentioned these, as apparently, their EA is able to 'hide' or 'sneak' through broker's detection attempts.
If these (#1 and #2 above) are true, then we also need to add such actions in our robot codes (attempt to disguise our robots to avoid identification by brokers).
i am hoping for your comments.