Which "fixed Spread Bandit" to Choose??

[Which "fixed Spread Bandit" to Choose??]

Hi,

VTK specifically said he wanted a fixed spread 'bandit/broker'. Certainly Oanda, Alpari and many others mentioned in the thread are variable spread - not fixed.

The only reasons I can think of as to why he wants fixed spread are:

A). He is planning to use a robot overnight and so does not want the spread to increase when he is not watching.

B). He wants to trade the News and so wants to avoid increasing spread during announcements.

C). He plans to scalp and wants a constant spread.

 

I would say:

A). Only use a robot which first checks if the spread is acceptable.

B). I doubt if any retail brokers are still good for trading News announcements - if they were, then they would have gone bust many months ago.

C). For scalping you asnt the lowest possible spread, not necessarily a fixed one. Unfortunately most/all(?) ECNs require a much larger deposit than $500.

 

Ian

[Why ADX > 20 Is a Lie + Easy Trading Method]

.....

Ok, so we are all told from various software vendors, trading forums, trading websites, educational vendors that the GOOD trades are in trending environments correct? We are told to wait for the ADX to be > 20 to take a trade? Because then we know the market is trending right? .....

....... Think about it like this: If you are getting into a move when the ADX > 20 you are by definition jumping into a position after price has ALREADY MOVED A GOOD DISTANCE IN ONE DIRECTION. Thus, its probability of that trend stopping and a reversion to its mathematical mean is much much more likely which means a move against you is much much more likely as well.

 

Now on the other hand, by getting into a trade when the ADX < 20 we are saying that we want to be in the move BEFORE ITS OCCURS and let us make profit while the ADX is increasing and the TREND is increasing.

 

Here are some examples from Friday on the EURUSD 1 minute chart. .......

 

Hi Daedalus,

I have no wish to offend you. perhaps you have more experience than me, but if I assume that you are not tyring to deliberately mislead people, I can only conclude that you do not understand either the ADX or what your strategy is based upon.

 

You have a point about the ADX getting you in late when a trend changes,

but you didn't wait for a trend change confirmation from the ADX on your chart. All your exampels of failing trades when the ADX is > 20 are counter-trend trades. Thus it should be obvious that the stonger the trend, the less likely they are to work out - so they give better results if the ADX is <20 when they are taken.

I did not see any examples of you using the ADX to get in with the trend (e.g. on the break of a bull/bear flag or a pullback).

 

Unless you know that you are doing it, and know the risks involved, it is deadly to one's account to trade an indicator in a way that goes against the theory behind the indicator.

 

I am not an expert, but I have learnt not to do that.

 

Ian