How to avoid the bad slippage? - page 3

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Enrique Dangeroux #:

No. But you can prevent opening of a position by setting the TP (does not matter how many points) on the wrong side. Example for a Buy position, set TP below open price.

But I only want to prevent position opening when there is slippage at a certain amount say x. Under normal conditions without slippage or only small slippage I want to open the position. 
What would happen if there is a slippage greater or equal x points and a TP of x?
 
Dr Matthias Hammelsbeck #:
But I only want to prevent position opening when there is slippage at a certain amount say x. Under normal conditions without slippage or only small slippage I want to open the position. 
What would happen if there is a slippage greater or equal x points and a TP of x?

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Scalping and Slippage

Enrique Dangeroux, 2022.12.02 19:10

Use limit orders or a broker that offers slippage protection.

As to the question. There is no answer. In general it would depend on the type of order and the broker. As i pointed out, there are brokers who offer slippage protection. So the broker knowing your price, the best offer, your TP the, difference between all of them, they can do anything. One being a reject if the best offer is x ticks away from your price.

Thus, the answer is in specific to your situation. Test it.

 
Enrique Dangeroux #:

As to the question. There is no answer. In general it would depend on the type of order and the broker. As i pointed out, there are brokers who offer slippage protection. So the broker knowing your price, the best offer, your TP the, difference between all of them, they can do anything. One being a reject if the best offer is x ticks away from your price.

Thus, the answer is in specific to your situation. Test it.

Thanks for your answer. I will test it.
My strategy uses stop orders at this point. 
 

There are several steps that traders can take to try to minimize the impact of slippage on their trades:

  1. Use limit orders: By placing a limit order, traders can specify the maximum price they are willing to pay for a security or the minimum price at which they are willing to sell a security. This can help to reduce the impact of slippage by ensuring that the trade is only executed if the desired price is available.

  2. Trade in liquid markets: Slippage is often more pronounced in markets with low liquidity, as there may be fewer buyers or sellers available to match trades at the desired price. Trading in more liquid markets can help to reduce the impact of slippage.

  3. Avoid trading during high-impact news events: Major news events or announcements can cause market volatility, which can lead to increased slippage. Avoiding trading during these times may help to reduce the impact of slippage on trades.

  4. Use a reputable broker: Choosing a reputable broker that is known for providing timely and accurate execution can help to reduce the impact of slippage on trades.

  5. Manage position size: By properly managing position size, traders can reduce the impact of slippage on their overall trading performance. It is important to use appropriate position sizing to ensure that any potential slippage does not have a disproportionate impact on the trade.

  6. Consider using a Market-Making algorithm: Market-making algorithms can be used to place a bid and ask order simultaneously, thus reducing the impact of slippage as the orders are matched internally.

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