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Does the broker know when trading with a Robot?

Discussion in 'Beginners Bootcamp' started by f-man, Dec 11, 2010.

  1. f-man

    f-man 4Xangels Representative

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    I have been reading the past few days about the robots and their performance etc.
    I was just wondering, do the brokers understand that a trader is using a robot?
    Are there brokers that wouldn't allow it for some reason?
     
  2. Steven_Smith

    Steven_Smith Private

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    Yes.
    Not for sure, but yes.

    You download MT4 platform from the broker's website. - They can put a code there to watch all your action.

    Broker has a full statistic about your account. It is easy to see when somebody dose the same all the time.

    There are working at this market not the first year, they know about EAs and automated trading systems.

    Why some brokers do not allow robots, because they pay your profit from their pocket. Who will like this?!
     
  3. Stanly

    Stanly Private

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    Hell yes they know! Look, some brokers don’t execute your trade, they just give you a signal. If you win—they pay you, if you lose—they take your money. But they have more then 90% chance that they will get your money. How do they know? - Statistic!
     
  4. Pharaoh

    Pharaoh Colonel

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    I'm not sure if they can all directly monitor your MT4 for a robot or not, but they do monitor every command from your end. Many robots will send modifications to SL and TP to multiple trades in a few seconds. Some can open and close trades on different pairs much more quickly than any human can.

    Naturally, the brokers also have copies of all the common robots, so know what patterns those use. An evil broker could even run one on a faster data feed to anticipate the EA opening and closing trades. At that point, it would be simple for them to arrange for price to jump a pip against all those anticipated entries and exits.
     
  5. f-man

    f-man 4Xangels Representative

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    Scary

    I never thought of that, but it sounds scary. It means that the brokers have the way to "fight" profitable robots!

    In that aspect, it is then better to be with a small size broker! The chances that the specific broker would have a large number of customers that use the same Robot are quite low. Of course if you grow your account so much, that they would go through that procedure just for you, it means you have earner already enough out of Forex! ;)


    I hope that one day I will be able to trade successfully without the help of robots!
     
  6. f-man

    f-man 4Xangels Representative

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    I didn't quite understand this. Could you please give me a more detailed explanation.
    What exactly do you mean by saying "They just give you a signal"?
     
  7. ququci

    ququci Recruit

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    ECN brokers?

    What about ECN brokers? In theory you are not trading against them. Do they really welcome successful robots, as some of them advertise? Do someone has experience with them?
     
  8. f-man

    f-man 4Xangels Representative

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    With just a little experience, the understanding is very different!!!

    I am glad to realize how much I have learned in just 1 month in this forum!
    Some robots are very unpredictable and I don't think that the brokers can do much against it.
     
  9. forexSQ

    forexSQ Recruit

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    they should not have problem if they are really ECN , but some broker tell you they are ECN but they are not real one .
     
  10. shaunna75

    shaunna75 Private

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    Thats right! you will always be the one making the decision so listen to your gut feeling and then don't blame others for your mistake like saying it was the bot that caused me to lose.
     

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