My trade result is different from yours, why?
When we send a signal, we include an open or a close price depending on a type of signal. These prices indicate the prices we execute a trade. As FOREX is not a centralised market and is not an exchange where the price is fixed, you may receive a different price for execution of that trade. Each broker has its own price feed. Moreover, you may have different price levels if you have different types of account with one broker. Commonly, small accounts have worse prices. ECN brokers provide the best prices with smallest levels of spread (difference between BID / ASK prices, prices used to make SELL and BUY trades). Please find the most common reasons why your trade is closed with a different result.
1. Different price of Open / Close.
Let us assume, we made a trade for the EURUSD currency pair and made a BUY trade at 1.23452 price. When you buy, you use the ASK price, so this price is very much affected by the level of a spread provided by your broker. The chance you will have absolutely the same price is very small. In general, over the period of time you should have a balance of better and worse prices for the trades you have executed. The same applies to a closing price. When we close a trade at, let say, 1.23536 we close it with a profit of (1.23536-1.23452 = 0.00084), 8.4 pips. If you had your trade opened at 1.2346 and close at 1.2353, then your profit would be 7 pips for the same trade.
2. Yours trade was closed by SL and Signalator trade was not.
Basically, all result related issues are mostly connected with the different prices used for execution of trades. In case a price level was extremely close to a SL level, it may happen, that your trade was closed by SL (price reached an SL level) and Signalator price was not reached. Please read the following article which explains it in more details.
3. Signalator trade was closed by TP and yours was not.
It may happen, a price eventually reached a TP level on Signalator account and did not reach a TP level on yours. In that case, we will indicate a result with a TP. You will close yours trade as soon as you receive a closing alert.
Which steps you may undertake to minimise the effect of these situations?
A. Place different SL / TP level slightly. If you execute trades manually, you may put a SL level 0.5-1 pip more than we do have and put TP level 0.5-1 pip less. For example, you receive a signal for GBPUSD to BUY at 1.3586 with SL at 1.3498 and TP at 1.3705. As both SL and TP levels are quite big, if you use 1.3497 for SL and 1.3704 for TP, you will get a difference of 1% which is not big at all, but you will reduce the risk of TP non closure and SL close dramatically.
B. Change a broker or an account type. As the price feed is the main concern, one of the most obvious ways to reduce its influence is to get the best data feed (the smallest spread level). Consider having a big enough account to qualify for a better spread level and / or consider choosing an ECN broker. ECN broker provides the best prices but charges a small fee for that.
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||Last updated: 4 September 2016