Is autotrading possible with a DC using Metatrader? - page 8

 
goldtrader >>:

Речь была изначально о МТ4 ДЦ. CMC Markets, насколько знаю, МТ4 не юзает.

They have their own software. This is just an example of combining a kitchen and a broker. I don't know of any examples of MT-based DCs that have gone all the way and become full-fledged brokers. Maybe there are some. But MT4 is definitely not made for that. It's great forex casino software. To think it's securities trading is naive.

 
timbo >>:

т.к. его посадят по-любому, он уже преступник

Maybe they will, but the question is when.

He may not live long enough to see this happy moment of justice and a well-deserved rest in a warm country )))

 
timbo >>:

Это просто пример совмещения кухни и брокера.

As I understand it, a kitchen is any brokerage company that is not connected to the interbank market, e.g. via ECN.

Otherwise how can a brokerage company cushion any market fluctuations internally and not go bust?

 
The situation is simple: the CD is a casino and, moreover, one where your cards are completely controlled ... put yourself in the place of a casino owner and everything will become clear ... So, no DT will let you rob yourself... under no circumstances... unless you pinch a little bit of profit... (and that's to attract new customers)
 

But casinos don't have a 50/50 chance of winning like forex. At those odds, any casino should go bust in a heartbeat.

 
in a casino you can count cards if your memory allows... In forex, the broker doesn't have to count your cards... all your cards are in the palm of his hand
http://www.proftraders.ru/news/20100903.php
http://www.proftraders.ru/platform.php
 
Andrei01 писал(а) >>

But the odds of winning in a casino are not 50/50, like in forex.


Why is it 50/50 in forex?
Do you trade without spread, negative (total) swaps, slippages, commissions ... ? ?
It is a game (in game theory classification) with a non-zero sum.

 

Thanks for the links.

But I don't get the logic everywhere. The kitchen is not explained at all, except for the emotional aspect. The brokerage says that brokerage covers losses, but it is the client's profit that should be covered, not the losses, because the trader will claim the profit back together with the initial deposit. And losses are covered due to the client's amount and so if not to cover losses on the interbank market, then it is the net profit of brokerage companies.

Again the broker cannot know in advance if a position will be profitable or loss-making in the future and that is why it is not clear how this information can be used to gain some profit at the expense of the client since 50% of transactions can be profitable and the broker has to pay the trader for this profit. By the way, it is written that it overlaps at another broker, which means that the second broker should also take it into account and at the end of the day take it to the interbank or refuse to overlap, which is also not an option for the first broker.

 
goldtrader >>:


Откуда 50/50 на форексе?
Вы торгуете без спреда, отрицательных (суммарных) свопов, проскальзываний, комиссий ... ?

Yes, I agree, but only on fast trades - scalping. Spread decreases the probability of winning on fast deals up to 20% (the number is relative, by eye) because the share of spread is more than 50% of the total price movement, while on long deals spread is a small percentage of price change and therefore it can be neglected in calculating the probability.

 
Andrei01 писал(а) >>

Yes, I agree, but only on fast trades - scalping. Spread decreases the probability of winning in fast deals up to 20% because its part of spread is more than 50% of total price movement; while in long-term deals spread is a small part of price change and so it can be neglected in probability calculation.


If you make 3-4 trades a day, you will have about 1000 trades a year. With an average spread of 3p and 0.1 lot losses on the spread will amount to about $3000.
And more on swaps, slippages, commissions of $ 1000 - 2000. I.e. 40-50 net profit figures will have to be traded to compensate for these losses. Unconvincing?