Trader today tried scalping 35-lot clips of EURUSD instead of GBPUSD. Even though the euro moves less than the pound, so the potential profit per trade is less, maybe the increased liquidity of the EURUSD might reduce the frequency of the “off quotes” rejections. I can only hope! Just received the trade log from Nigel (the day trader). Because of his good performance today, I though that the executions were better than before. Boy was I wrong!
Feedback from trader: Quote, “A real fight today….not just to get a fill, but when I have a position to get out!” Thank you Lord for giving our trader a lot of balls, I mean courage!
When I asked him if the executions on the EURUSD were better than the executions on the pound, he said, “The fills on the EUR/USD are no faster or better than on the GBP/USD – as you’ve seen in the log. Worse maybe! The reason I switched to Euro is because the spread on the £ [pound] has widened out to around 3 pips with FXLQ…even on a fast mkt – although of course it is variable. On the EUR/USD the spread is usually just 1 pip… esp on a fast mkt. So although the volatility is greater with the £ (which I like, since it tends to move further in either direction) its only 1 pip to break even point on the Eur instead of 3 with the £… and the 3 pip spread on the £ means my stop is also that much nearer! So its all about risk/reward and how long it takes to get executions! So I may stay with the Euro for now until/unless the spread narrows with FXLQ to 1 pip on the £.”
When you look through my comments on the trade log link below, you will see that delays in reporting trade rejections are still common; so are delays in the activation of stops and a great number of trades rejected with the “off quotes” message even though the price has not moved beyond the 2-pip deviation setting. We are also getting “requotes” and sometimes it takes many attempts to get out of a position even though the price is not going anywhere. These problems must be corrected by FXLQ.
By the way, the “frozen trade” from Friday 11/3/06 was reversed today by FXLQ.
Click here to see the trading log for this incident (in a new window).
