Quote from clarodina:
Multichart connect to IB. However u need to convert your rules into easylanguage. Have not try wealthbuilder or open quant. Strategy runner or ninja possible to connect to IB too...
Btw whats your usual profit target? Cos wonder how high frequency trading capture profit? Have some system that has good equity curve. But when factoring slipage like 0.0001 for eurusd spread (Ask/Bid) the curve just opposite 45 slope down. If factoring commission like $2.5 per trade, a trader is for sure losing... High frequent trading average profit (for eur) for $100 profittarget and stoploss, the average profit is so small and is not possible to cover simple slipage like system give a sell at 1.9911 the filled price is 1.9910. Have u trade your frequent system real? how is the result?
Btw there is another issue.. do u use chart base on ask or bid price or trade price cos the fill is different...
The answer is not that straightforward.
Momentum trading used to work very well in FX, but these days are definitely over. Right now I use a fading strategy purely on the back of short term charts and this works well in the present climate, depending also on the currency pairs you look at (I don't trade eur/usd anymore as it is imho not possible to have a consistent strategy in that pair).
When fading, I use a standard amount and take profit after 15 -20 pips utmost. If the price doesnt go my way in a short time, I either stop and re-enter at a better rate OR I scale in the fade trade via a martingaling technique (depending on the level of confidence).
Now here's the point which may interest you: I find IB much much better for this fading / hight frequency trading and very short term scalping strategies, as their prices are much more "honest" and true than Saxo's prices: Saxo tends not only to quote much larger spreads but also skews the prices to their own interest, which is not always a true representation of the real market (if you scalp for 10 pips and they quote 4 pips wide + on top of that skew the price against you, you will not easily make the 10 pips as the market almost needs to go 15-20 pips your way before you are in a position to make the 10 pips profit..., the latter seriously lowers your probability and indeed your equity curve). So some strategies won't work, depending on what broker you work with. This may be what you refer to as the fill on chart base or not.
Bottom line: everything is a trade off: IB: better spreads, correct market pricing, possibility to connect with API, but more cumbersome platform for fx, no fx options and connectivity problems. Saxo: no connectivity problems and nice trading platform/front end/order system, but at times very bad and inconsistent pricing which can be very frustrating. It is for me absolutely certain that a complete autotrading tool will miss a lot of signals on Saxo, given the skew and larger spreads.
