72 trades a day isn't that enormous really. Have you seen transcripts of demo contests participants?Originally Posted by ;
72 trades a day isn't that enormous really. Have you seen transcripts of demo contests participants?Originally Posted by ;
Targeting 3 pips on a 2 pip spread is insane just for the simple truth that spread is always shing on most brokers. So that the 1 pip profit, would be cut if the spread increases even by the tiniest amount. And lets not say exactly what 1 loss could do for your account along with the work which will be needed to just recover from that 1 loss. . .depending in your stop loss, but whatever you decide on, I am willing to bet you'd need a success rate of close to 99.99 percent to become profitable...:/
afford the pipsology course, it is a free...
In case your spread is two pips you need 4 pips just to break even and 5 pips to create a profit. You pay when you walk in the market and you pay in your way out.Originally Posted by ;
You may find this post helpful in determining how much disperse affects trading.
https://www.nigeriaforextrading.com/...1-markets.html
that is accurate, can't forget about giving up those extra pips when you exit a transaction!Originally Posted by ;
Except for the Question, but this is what the broker is making? This four pips? 2 on the road out on the way in and 2?
No.Originally Posted by ;
Assuming you're comparing like with like, (when it comes to roundtrip/per leg) s noted by Sys.iphus above. .
Spread is only one element.
The key metric is Transaction Cost, which accounts for the totality of Execution costs . . Such as slippage etc..
There are enormous variations in TC involving brokers.
The profitability of all scalping egies are tremendously broker specific.
No. Spread is currently embedded in the introductory price of this trade. Therefore, to acquire profit 1 pip is enough, irrespective of the value of this spread.Originally Posted by ;
I can't agree more. This is just what makes takes be aback when I visit someone presuming a demo account can be an ideal way of practicing trading. In my view, sue to issues like slippages in live trading, I feel a demo account is much better used for practicing various trading egies, and perhaps getting to know what moves what currency.Originally Posted by ;
Finally, I believe brokers are thrilled when they visit a scalper.
Thank you for remark Moonshot. .Originally Posted by ;
I refer to the accountable cost metrics being discussed previously (commission/spread/volume terms etc ) as Considered Transaction Costs (comparative easy to measure).
And the latency/slippage/execution type costs, as Hidden or Sudden Transaction Costs The problem is that these can't be accurately modeled in your broker Demo/Test information, since they are highly variable and Broker particular.
A current Boston Technologies Blog by Anna Aratovskaya, quotes Rishi N Rang and his book Inside the Black Box,. . As follows. .
UTC/slippage accounts for more than half of all transaction cost combined. If you've already calculated your monthly Considered Cost, now double it - what percentage of your overall monthly profit and loss would that be? ....
And goes on to remark on how hard these costs are to model out of demo/test data.
Institutional Transaction Cost Analysis has become a major focus in institutional trading. . And has exposed differences between different brokerage services.
That I can only imagine what proper TCA would reveal if employed to Retail Brokers. LoL
Hope this of help.
Thank you for remark Moonshot. .Originally Posted by ;
I refer to the accountable cost metrics being discussed previously (commission/spread/volume terms etc ) as Considered Transaction Prices (relative easy to quantify).
And the latency/slippage/execution type expenses, as Hidden or Sudden Transaction Prices The challenge is that these can't be accurately modeled on your broker Demo/Test information, because they are highly variable and Broker specific.
A current Boston Technologies Blog by Anna Aratovskaya, quotes Rishi N Rang and his book in the Black Box,. . As follows. .
UTC/slippage accounts for over fifty percent of all trade cost combined. If you've already calculated your monthly Cost, now double it - exactly what proportion of your total monthly profit and loss would that be? ....
And goes on to remark on how hard these prices are to model from demo/test data.
Institutional Transaction Cost Analysis has become a major focus in institutional trading. . And has exposed startling differences between different brokerage services.
That I can only imagine what appropriate TCA would reveal if employed to Retail Brokers. LoL
Hope this of help.