Discussion Million Dollar Pips

Mr Fughe, Thats an amazing amount of text your putting out. Are you typing all of it or are you using a voice to speech program?
 

   lobotomy8 posted:
   But this rationale drives to conclusion that slippage works in favour for MDP helping to fulfill the order :))))) no sence ?

You need to read it over a few more times then because your understanding of it isn't complete. As for the typing, I type it all in manually. The reason I am understand what is going on with this system is because I have traded bank order flow. You must understand how the market works with that type of system to trade it. Anyway....Britt understands it. Maybe she would be willing to offer up a different version of the same explanation.

But once again, talking about slippage at retail brokerages - forget about liquidity, you should only be concerned with it if you trade 10Mio+ orders institutionally. Slippage at retail comes in 90%+ cases simply due to the latency, during the time it took your order to get to the broker and for the broker to process it price simply move away. If you were using pending stop order, it is a latency of your broker, a time that took him to execute your conditional market order (this is what a stop order really is) and market simply moved away during this time. This is why slippage can be positive some times if broker is not real crook and uses Boston Tech Virtual Dealer plug-in where positive slippage can be eliminated. But in most cases your slippage on a pending order will be smaller than on a market order simply because it just took less time to process and fill.

   mistificator posted:
   But once again, talking about slippage at retail brokerages - forget about liquidity, you should only be concerned with it if you trade 10Mio+ orders institutionally. Slippage at retail comes in 90%+ cases simply due to the latency, during the time it took your order to get to the broker and for the broker to process it price simply move away. If you were using pending stop order, it is a latency of your broker, a time that took him to execute your conditional market order (this is what a stop order really is) and market simply moved away during this time. This is why slippage can be positive some times if broker is not real crook and uses Boston Tech Virtual Dealer plug-in where positive slippage can be eliminated. But in most cases your slippage on a pending order will be smaller than on a market order simply because it just took less time to process and fill.

Are you factoring in that there are probably a multitude of people trying to trade MDP. I know from talking to certain brokers that they have many hundred's of traders using MDP. And most of these people are not using micro lots. So using the knowledge that I have from bank orderflow, at any given moment, the amount of available liquidity against the trend at any given price within a 1 pip range has shown to be between 5 and 25 lots. So....lets assume that no one other than MDP trades are placing trades at that moment. At MDP's stop level (and they are all nearly identical) let's say that people are using 0.1 mini lot on average (is probably higher). And let's use a conservative estimate and say there are only 10,000 MDP traders. That means at given price level if there are 25 lots available, MDP is trying to fill 1000 lots worth of positions. It should now start to become clear why there is slippage for everyone, and even more so for people trading MDP.

There are other dynamics/factors that are being left out to keep this example simple. Just trying to make sure people understand why slippage is an issue.

Fughe, liquidity on OBFX like in any order book is not in lots, its in Mio, so multiply by 10. Then you assume you trade directly with the interbank but you aren't. Besides, we trade only small retracement of the trend, most people will be buying (given we are selling up spike) and providing us with liquidity to sell, even though intra-broker. The only competition comes from other MDP traders and from the broker itself as he would be selling in order to offset his earlier buy but he will be selling on ECN not internally, so I don't see no problem with liquidity at all. The only concern is the speed and broker's capacity to process so much orders same time from all MDP users.

Today +13 pips, but unfortunately equity falls down. First transaction generated big loss and other transactions couldn't overlap it.

I set up min lots at 0.6 and max lots on 2.0 lots, why MDP increases 2.0 lots significantly ?

My settings are default, risk at 2%, version 1.2.0

GUYS - PLEASE ADVISE - WHAT SHOULD I DO ? How to improve MDP here ?

20703711 2011.10.07 15:30 sell 5.00 eurusd 1.34847 1.34975 1.34625 2011.10.07 15:30 1.34975 -37.65 0.00 0.00 -640.00
20704582 2011.10.07 15:30 sell 4.56 eurusd 1.34897 1.34901 1.34671 2011.10.07 15:31 1.34901 -34.34 0.00 0.00 -18.24
20706225 2011.10.07 15:31 sell 2.14 eurusd 1.34874 1.34848 1.34643 2011.10.07 15:33 1.34848 -16.11 0.00 0.00 55.64
20705967 2011.10.07 15:31 sell 2.14 eurusd 1.34870 1.34862 1.34672 2011.10.07 15:33 1.34862 -16.11 0.00 0.00 17.12
20709216 2011.10.07 15:33 sell 1.22 eurusd 1.34856 1.34872 1.34694 2011.10.07 15:34 1.34780 -9.19 0.00 0.00 92.72
20709332 2011.10.07 15:33 sell 1.21 eurusd 1.34838 1.34884 1.34676 2011.10.07 15:34 1.34775 -9.11 0.00 0.00 76.23
20709370 2011.10.07 15:33 sell 1.23 eurusd 1.34840 1.34884 1.34678 2011.10.07 15:34 1.34776 -9.26 0.00 0.00 78.72
20709401 2011.10.07 15:33 sell 1.21 eurusd 1.34841 1.34884 1.34679 2011.10.07 15:34 1.34758 -9.11 0.00 0.00 100.43
20710480 2011.10.07 15:36 sell 1.19 eurusd 1.35015 1.35072 1.34827 2011.10.07 15:36 1.35072 -8.96 0.00 0.00 -67.83
20710929 2011.10.07 15:37 sell 1.19 eurusd 1.35002 1.35063 1.34814 2011.10.07 15:37 1.35063 -8.96 0.00 0.00 -72.59
20711450 2011.10.07 15:37 sell 1.16 eurusd 1.35064 1.35143 1.34876 2011.10.07 15:38 1.35143 -8.73 0.00 0.00 -91.64
20711712 2011.10.07 15:38 sell 1.21 eurusd 1.35124 1.35136 1.34936 2011.10.07 15:38 1.35136 -9.11 0.00 0.00 -14.52
20711955 2011.10.07 15:38 sell 1.18 eurusd 1.35115 1.35075 1.34927 2011.10.07 15:40 1.35041 -8.89 0.00 0.00 87.32

it combines orders. reduce risk instead or switch off grouping

i have just purchase mdp, yesterday open whole day, just two trade open, -$1.14 for 0.01 lots.

   tharaka posted:
   For some reason my trades didn't go through today about two hours ago.. I can see the demo here has returned profit and other online accounts as well..

I checked the journal and can see the following error..

2011.10.06 19:15:55 MillionDollarPipsEURUSD_1.2.0 EURUSD,M1: 39: WARN following error blocked our last trading command (REQUOTING + REPEATING) : invalid stops

Has anyone experienced this before? My execution times weren't that bad, however showed a rejection rate of 16%. Spreads were good as well. I'm using defaults with 1% risk and Max_Sim=5.

Thanks all..

are you trading mdp as live account or demo account ?
so far how is the result ?

Faboulous EA. 4 straight day with Amazing result. 😀

Yep, that was really good week.

nawistmi: what broker do You use?

   mistificator posted:
   Fughe, liquidity on OBFX like in any order book is not in lots, its in Mio, so multiply by 10. Then you assume you trade directly with the interbank but you aren't. Besides, we trade only small retracement of the trend, most people will be buying (given we are selling up spike) and providing us with liquidity to sell, even though intra-broker. The only competition comes from other MDP traders and from the broker itself as he would be selling in order to offset his earlier buy but he will be selling on ECN not internally, so I don't see no problem with liquidity at all. The only concern is the speed and broker's capacity to process so much orders same time from all MDP users.

Okay....if most people are buying....and MDP has opened a sell stop....then there is no retracement, since MOST people are buying. Therefore, no MDP trades are never opened. Do you realize you are contradicting yourself? There must be more sellers for the price to reverse from an upward spike. Ergo, a lack of buyers....or low liquidity on the buyer's side.

I did check into the OBFX and you are correct about it displaying in millions. I had the impression it was displaying in lots and nobody ever told me otherwise, so mistake duly noted.

   lobotomy8 posted:
   Today +13 pips, but unfortunately equity falls down. First transaction generated big loss and other transactions couldn't overlap it.

I set up min lots at 0.6 and max lots on 2.0 lots, why MDP increases 2.0 lots significantly ?

My settings are default, risk at 2%, version 1.2.0

GUYS - PLEASE ADVISE - WHAT SHOULD I DO ? How to improve MDP here ?

20703711 2011.10.07 15:30 sell 5.00 eurusd 1.34847 1.34975 1.34625 2011.10.07 15:30 1.34975 -37.65 0.00 0.00 -640.00
20704582 2011.10.07 15:30 sell 4.56 eurusd 1.34897 1.34901 1.34671 2011.10.07 15:31 1.34901 -34.34 0.00 0.00 -18.24
20706225 2011.10.07 15:31 sell 2.14 eurusd 1.34874 1.34848 1.34643 2011.10.07 15:33 1.34848 -16.11 0.00 0.00 55.64
20705967 2011.10.07 15:31 sell 2.14 eurusd 1.34870 1.34862 1.34672 2011.10.07 15:33 1.34862 -16.11 0.00 0.00 17.12
20709216 2011.10.07 15:33 sell 1.22 eurusd 1.34856 1.34872 1.34694 2011.10.07 15:34 1.34780 -9.19 0.00 0.00 92.72
20709332 2011.10.07 15:33 sell 1.21 eurusd 1.34838 1.34884 1.34676 2011.10.07 15:34 1.34775 -9.11 0.00 0.00 76.23
20709370 2011.10.07 15:33 sell 1.23 eurusd 1.34840 1.34884 1.34678 2011.10.07 15:34 1.34776 -9.26 0.00 0.00 78.72
20709401 2011.10.07 15:33 sell 1.21 eurusd 1.34841 1.34884 1.34679 2011.10.07 15:34 1.34758 -9.11 0.00 0.00 100.43
20710480 2011.10.07 15:36 sell 1.19 eurusd 1.35015 1.35072 1.34827 2011.10.07 15:36 1.35072 -8.96 0.00 0.00 -67.83
20710929 2011.10.07 15:37 sell 1.19 eurusd 1.35002 1.35063 1.34814 2011.10.07 15:37 1.35063 -8.96 0.00 0.00 -72.59
20711450 2011.10.07 15:37 sell 1.16 eurusd 1.35064 1.35143 1.34876 2011.10.07 15:38 1.35143 -8.73 0.00 0.00 -91.64
20711712 2011.10.07 15:38 sell 1.21 eurusd 1.35124 1.35136 1.34936 2011.10.07 15:38 1.35136 -9.11 0.00 0.00 -14.52
20711955 2011.10.07 15:38 sell 1.18 eurusd 1.35115 1.35075 1.34927 2011.10.07 15:40 1.35041 -8.89 0.00 0.00 87.32

The only way to improve MDP is to get lucky.

   nawistmi posted:
   Faboulous EA. 4 straight day with Amazing result. 😀

So how well has it been doing?

I am not, people (and HFT) are buying on retracements. MDP has analytic algo that evaluations recent market volatility, range or channel borders and estimates when retracement starts. MDP sells where momentum and break out traders are buying. The reason retracements exist is due to Market Makers replenishing their inventories. If you traded the news you should know it: when you buy on a positive news someone is selling to you, in most cases this is a market maker, so unless a market maker wants to suffer with a short position in a long market he will start selling more soon in order to get better average, once market retraced he will start buying to get flat on inventory. This is why news spikes very often have big retracements and then continuations - just the order flow. Ask Nick about how it works. He will tell.

   fughe posted:
   

   mistificator posted:
   Fughe, liquidity on OBFX like in any order book is not in lots, its in Mio, so multiply by 10. Then you assume you trade directly with the interbank but you aren't. Besides, we trade only small retracement of the trend, most people will be buying (given we are selling up spike) and providing us with liquidity to sell, even though intra-broker. The only competition comes from other MDP traders and from the broker itself as he would be selling in order to offset his earlier buy but he will be selling on ECN not internally, so I don't see no problem with liquidity at all. The only concern is the speed and broker's capacity to process so much orders same time from all MDP users.

Okay....if most people are buying....and MDP has opened a sell stop....then there is no retracement, since MOST people are buying. Therefore, no MDP trades are never opened. Do you realize you are contradicting yourself? There must be more sellers for the price to reverse from an upward spike. Ergo, a lack of buyers....or low liquidity on the buyer's side.

I did check into the OBFX and you are correct about it displaying in millions. I had the impression it was displaying in lots and nobody ever told me otherwise, so mistake duly noted.

   mistificator posted:
   I am not, people (and HFT) are buying on retracements. MDP has analytic algo that evaluations recent market volatility, range or channel borders and estimates when retracement starts. MDP sells where momentum and break out traders are buying.

I give up. Someone else can explain it to you.

Im at work and cant veiw my charts yet, how did everyone do today on the non farm news friday?

My IBFX account was positive. My ILQ account was a loss.

Hi fughe, are you sure it can run in IBFX? William told me the spread is too high, must change broker which is lower spread than 2pips. So far im trying it on alpari demo account it's working but broker has blocked some transaction, profit $70 in less than 5mins with deposit $1000. Now im trying to attach the EA on think forex. Will update u guys sooner....