Laggish slow broker latency not intended
Lacko AY:I was trading by two brokers with intention to have position balanaced and in opposite direction.
- In an absolute perfect world, you lost by twice the spread.
- In an imperfect world, your FX brokers have different feeds, and you lost by more.
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I was trading by two brokers with intention to have position balanaced and in opposite direction. I am trying to understand base principles behind slowness of broker on MT4 from technical standpoint.
I am software engineer I have developed simple script when I am closing position on one broker related to hedghe on second broker, my script reacted in terms of miliseconds.
It should be capable deliver order in 6ms. Don't know won't believe this is technical problem why is some broker slower in price? They share same liquidity providers when amateur like me can bring script in 6ms execution then broker shoul have some sort of infrastructure.
POS 1 closing position 136.241 BUY MARKET ORDER
POS 2 closing position by broker because of no funds 136.674 SELL STOP OUT
The bad thing is that the real price was 136.674 so 43.3 pip above and it seems that I should have been wait a couple of second,
to get profit from POS1 so I am in lost of 43.3 pip right now.
So I walked into some fucking latency and realized that even I am intraday trader who is trying to hold position longer,
sometimes biggest movement are on 1 minute timeframes and cannot be escaped when holding position. It basically stopped me out on one POS2
and executed too soon in POS1. So either I want or don't want I am trading this latency when I am holding currency in market news time window.
My system has different logic but that made me think about slowness of broker and If is possible to invert script in way that I will check these ineffectivities
on two price feeds and then try somehow entry into POS1 when I know that price will jump 100% guarantee problem is who will be buying from me liquidity provider or basic John Doe market participant?
I know that latency give me where price will be question is if is technically possible in 6 ms to entry 136.241 BUY probably with LIMIT or try LIMIT order because market order "who knows where will be in these times
executed"? I won'ted to trade latency but it totally screw me so my origin hedge is either way not covered when one position is closed and the second is still waiting to price adjustment from 136.241 to 136.674 so its not so market neutral how I initially thought.