do faster computers make a difference with slippage?
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Thread: do faster computers make a difference with slippage?

  1. #1
    Hi guys,

    I recently read a pdf file from a business which builds trading computers, and he claimed that using a faster chip and components etc would prevent slippage. Now I am sure having a quick reliable computer is a vital tool for particularly a news traders, my understanding is slippage is not caused by a slow pc but because of brokers being unable to fill your order in time. Quote me if I'm wrong but would with a i7 chip really make a gap of over an i5 chip? Any input would be amazing

    cheers!

  2. #2
    Quote Originally Posted by ;
    hello guys, I recently read a pdf document from a company which assembles trading computers, and he claimed that having a faster processor and components etc could stop slippage. Now I am sure having a quick reliable computer is a vital tool for especially a news traders, my understanding is slippage is not due to a slow computer but because of brokers not being able to fulfill your order at time. Quote me if I'm wrong but would with a i7 chip really make a difference of over an i5 chip? Any input will be amazing cheers!
    I'm new to trading however I will offer your question a go. Going into an i7 with an i5 I wouldn't think mattered. In the event that you had a very bad PC which couldnt properly manage trading appliions then I think you would have troubles. I'd think an connection could be worse for obtaining transactions placed. I'm new too however what do I know the i5 to i7 is like night and day for slippage trading. Just thought I'd say my two pennies in saying I'm guessing its just a marketing ploy also say their PC's are the best of the best and will help you trade better.

  3. #3
    Quote Originally Posted by ;
    An EA is a expert advisor, this can be a trading platform which gives you entry signs to enter manually or a totally automated system. Whenever you've got a totally automated system you can rent a server, allow the system run on your server and do it do everything to you.
    Dependent on the programmer's trading analysis, the robot works on scanning some trading signs and also execute an order.

  4. #4
    In addition to all things Dkam stated, it might matter for automated systems, it does not for retailers trading manually in their high-latency brokers over a cheap telephone line on windows PCs with hundreds of background tasks.

    Explanation: If you have a system which reads prices via FIX ( or so) acting to these information by opening or closing transactions compared to yes, theoretically, your own calculating time things. It is going to decrease your own computers reaction time and might as a consequence give you better performance prices - it is not really slippage although ...
    Should you trade in your home, manually, connected to the net via a cheap telephone line into a broker at the opposite end of your nation or worse, on another continent, you've far bigger latency issues to reduce first. In addition to that, MT4 or 5 is not created for low latency and your own response time, for example your tracks response time, is probably already bigger than any profit by buying computers that are faster.

    Should you trade manually, you can't compete with HFT and you shouldn't even attempt.

  5. #5
    I believe nothing can stop slippage during the news release period, no super fast computers EAs nor any user friendly platforms in my view and its better we can trade on As it's basis. . I all the times avoid trading during the NFP or higher effect news release time due to the stated reason.

  6. #6
    Slippage has nothing.
    Slippage is caused by the price changing in time your order is being executed, either due to latency (meaning the price changed in the time you clicked the sell or buy button and by once the order gets filled) or with a lac of traders to fulfill out the order. And of course there is always a possibility of broker manipulation with Forex brokers.

    There are two approaches to prevent or control slippage, the first manner which eliminates slippage is limit orders.
    Another means to control slippage is market range orders, with these kind of orders you will need to enter the most slippage you allow on a trade, if there is to much then the order will not be executed.

  7. #7
    Quote Originally Posted by ;
    quote I am new to trading however I can offer your question a go. Going from an i5 to an i7 I wouldn't think mattered. In the event that you had an extremely bad PC that couldnt properly handle trading software then I think you would have troubles. I'd think an unreliable internet connection would be worse for obtaining transactions placed at the amount you want. I am new too trading though what do I know possibly the i5 to i7 is like day and night for slippage. Just thought I'd say my two cents in stating I am guessing its just a marketing ploy too say their PC's are the best...
    thanks for your input subliminal, completely agree with you. In the event that you were using a 20 year-old computer when compared with an i7 today there could be a major difference but maybe not so far between an i5 and i7

  8. #8
    Quote Originally Posted by ;
    Slippage doesn't have anything to do with your pc. Slippage is brought on by the price shing in the time your order has been executed, either because of latency (meaning that the price changed in the time you clicked the market or buy button and from once the order becomes filled) or with a lac of traders to fill the order. And of course there is always a chance of broker misuse together with Forex brokers. There are two approaches to prevent or restrain slippage, the initial method which eliminates slippage is limit orders. An additional way to restrain slippage is market range orders, together with these...
    dkam thanks to your input and advice regarding slippage. . I think the guy that was selling computers based on saying a bad performance computer is the main reason behind slippage was using the phrase purely as a marketing effort. I've an ea I use you could input the max slippage allowed while the transaction is executed which really helps a lot. cheers!

  9. #9
    Should you use a EA you are able to lease a server as close as possible to the execution server of your broker, by this you may have lower execution time and so less slippage.
    Another advantage is that your EA still runs in the event that you receive a power or net outage at your computer.

    Of course the slippage advantage is only going to help if the EA is high frequency because the difference between the server and your computer is only going to be milliseconds.

  10. #10
    Quote Originally Posted by ;
    If you use a EA you are able to lease a server as close as possible to the implementation server of your broker, by this you will have lower implementation time and less slippage. Another advantage is that your EA still runs in the event that you get a power or net outage at your pc. Of course the slippage advantage will only benefit if the EA is high frequency because the difference between the server and your pc will only be milliseconds.
    Thanks to your input again! Is that something much like a VPS? I seemed on fxpro plus they have a vps log in that can execute orders in 1-5ms compared to 300-400ms of a server, by having a server at their implementation stage like you said.

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