Do you prefer market or pending orders?

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I'm trying to make a list of the pros and cons of placing market orders vs. pending orders in an EA. On the surface it seems there wouldn’t be much of a difference because an EA could send a market order at the same time a pending order would be placed. I haven’t done any testing yet I just wanted to get some thoughts on the topic first.


Here are some of my hypotheses

Code written with pending orders is more efficient and will shorten the time of back testing.

In live trading pending orders will be executed faster.

Placing market orders will allow me to prevent trades from opening when the spread increases.


You agree or disagree with these statements and do you have any other reasons to pick one over the other?

 

BC

There is no better or worse here

They are used as appropriate to the system

All EA's should start with a strategy that can be described

The tactics required to implement the strategy define the indicators &/or price action necessary and all these determine the order type

Pending orders are typically used for ranging (by Limit orders) or breakout (Stop orders) and should execute more reliably but are more tempting for the unscrupulous broker to spike and reverse...

In summary, you dont chose which order type to use, your system decides

FWIW

-BB-

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