Does anybody have answar to this ?
Please i would like to know if brokers can manupulate EA either to give it false signal differrent to actual signal coded for the EA or to prevent it to place orders . Also i will like to know any form of influence the brokers have on EA.
The broker can only "see" your requests (done via OrderSend/Close/CloseBy/Modify/Delete functions) as well as "knowing" that they are done via an expert (as opposed to done manually). It cannot see any other information associated with the expert (any of it's internal working, indicators, etc.).
The broker has 2 main ways in which he can manipulate your expert (indirectly):
- Manipulating the ticks it sends to the Terminal. IMHO, this very unlikely; I do not believe brokers 'Stoploss-hunt' their clients as much as is widely believed (again - this is IMHO).
- Manipulating the processing of your requests (for example - injecting delays, slippage, re-quotes, etc.). This depends on the broker used. With big reputable brokers this is usually not a problem, although experts should be designed to take these kind of phenomena into account, since these happen to a small extent regardless of manipulation (especially during news or abnormal market conditions).
In theory brokers can also do things such as closing orders although the price did not reach the stops, etc... But I have never heard of any broker doing this.
I've often wondered about this myself. The presumption that we should trust our broker. We are also told that our ex4 codes cannot be reverse-engineered and decompiled, but alas we all know that turned out to be a fairytale.
What gordon writes is what we are TOLD to believe about the system. But we have no proof that this is the case. Just like we were told that ex4's could not be decompiled.
Do we really know what sorts of backdoors have been intentionally engineered into the clientside of the software for the assistance of the broker making profits (clients are NOT metaquotes customers afterall, the customer paying for the software and platform is the broker after all)? We don't know, we just hope.
I have often wondered whether or not we should really assume that our EA's even stay on our machine. If you had a successful EA it just seems the temptation would be there for the broker to want some way of getting their hands on that EA...your EA, if it is profitable, is worth more to the broker (and anyone else with deep pockets) than your trust and your trade account. The financial incentives of all the players in the system are not aligned. Look at Goldman Sachs and Bernie Madoff.
For now I just accept that the broker could be manipulating my price stream to their benefit, or stealing my EA without me even knowing it, because I haven't developed the skill set necessary to get around this. The metroid trader guys claim they have but it is all beyond me at this point.
The metroid trader guys claim they have but it is all beyond me at this point.
Sorry, the what guys???
whoops, sorry meant megadroid, not metroid. Too much early 1990's nintendo play for me :)
It cannot see any other information associated with the expert (any of it's internal working, indicators, etc.).
Since my statement seems to be controversial, I'll rephrase:
AFAIK and IMHO, the broker cannot see any other information associated with the expert (any of it's internal working, indicators, etc.).
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Please i would like to know if brokers can manupulate EA either to give it false signal differrent to actual signal coded for the EA or to prevent it to place orders . Also i will like to know any form of influence the brokers have on EA. Thanks