The more people who use the Same EA - page 2
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
it is simply the less reliable
it is simply the less reliable
care to explain?
you can imagin that there is always a rival, he sells then you could buy. if you have no rivals, you can't do any trade.
In order to make a deal, you have to buy at a higher and even higer price, sell at a lower and even lower price, that will make your ea reliable.
You must aware that you are doing tradings with some one who holds the opposite opinion towards the instrument .
you can imagin that there is always a rival, he sells then you could buy. if you have no rivals, you can't do any trade.
In order to make a deal, you have to buy at a higher and even higer price, sell at a lower and even lower price, that will make your ea reliable.
You must aware that you are doing tradings with some one who holds the opposite opinion towards the instrument .
as what Enigma71fx had also commented
seems to make some sense to me...
as what Enigma71fx had also commented
seems to make some sense to me...
In my opinion, it depends on whether:
scenario #1) the EA is used exclusively at one Brokerage where in that case yes it could quickly reach a threshold depending on how many clients would be joining in the same signal for that broker to execute simultaneously across all customer accounts (that threshold would vary from broker to broker -whether it is 50 standard lots or 5,000 at a clip).
and/or
Scenario #2) Clients can use the same EA across many brokers then to reach a collective threshold would take longer until there are so many people globally using the same signal where it is significantly affecting sentiment/bias or volumes and affecting trade execution through retail brokerages and causing undue slippage, re-quotes,etc.. (again varies from broker to broker and how many clients are using the EA and size of trades and frequency). Perhaps there are custom solutions that the broker could come up with should this become an issue in order to better accommodate a large number of clients using the same EA, although so far I haven't heard this being an issue with the exception of a few popular EA's and in cases where broker's couldn't handle the order flow (due to it being a back office issue with allocation or some other limitation or their inability to offset/manage the risk as a market/maker or agency.
The answer is : it depend on how much money is traded - I'll explain later.
Next question/pool : The more people use the same signal :D
The answer is : it depend on how much money is traded - I'll explain later.
Next question/pool : The more people use the same signal :D
The answer is : it depend on how much money is traded - I'll explain later.
Next question/pool : The more people use the same signal :D
There are always 2 sides in market : Seller and Buyer, or Supply and Demand.
If Buyer buys more than Seller, then the price goes up, and vice versa, if Seller sells more than Buyer, then the price goes down . Regardless of your trading technique, method or strategy, what rules the market is actually how much money traded on one side - the Buyer side or Seller side , (read that sentence again please :D ).
So even if we have no profitable trading strategy, as long as we have a lot of money, we can always dictate the direction of the market. This trading strategy is basically using huge amount of money by acting only on one side (as a buyer or as a seller) and its called "cornering the market" strategy. Here's Wikipedia article about cornering the market https://en.wikipedia.org/wiki/Corner_the_market.
Central Banks are well known for this. Central banks does not have any trading strategy, but they do have a lots of money. Central banks - sometimes works together with other Central Banks - may enter the market and inject huge amount of money, often for several days in a weeks, just trying to change the valuation of it's county currency by changing the course of the market. They usually successful in re-valuating it's country currency - but as usual it's only for a short time. Market will eventually fight back and regain it's position against Central Banks.
If ordinary investor (like you and me) have a lot of money, then we may also able to change and dictate the direction of the market - without any trading strategy. Just read several articles from Wikipedia link I give before.
What rules in normal market, without any 'cornering' activity, is still how much money traded on one side. So if 1,000,000 peoples using the same EA and trade forex, but each one of them only trade $ 100, then the 4 trillions forex market will dictate the EA. However if each of these 1,000,000 EA user trade $ 1,000,000 then the EA will definitely run smoothly until the forex market unable to find the buyer/seller for these EA users and/or/until these EA user running out it's $ 1,000,000 capital (because nobody buy when they sell and vice versa).