Slippage and ground for filing a court case?

[fxdaemon]

Hi folks,
Currently EA scalp trading with an STP broker MT4 platform which consistently filled my market order from 5 pips or above (as high as
20). Basically I have compiled the following arguments to support my complaint:

1. Due to high slippage, about 50% of my trades were executed with pre-calculated TP set on the wrong side of the trades resulting in
guaranteed losses. On the same platform, manually opened trades with TP on the wrong side is rejected. However, with EA trading,
this is not the case. So it's a very clear and obvious mis-representation of trade execution behaviour.

2. EA placed order specifying a favourable price only to be slipped with high slippage. Immediately after trade placed, tick quote
updates returned to favourable price relative to my EA. This is observed in up to 7 or 8 subsequent tick updates within same second
of order filled. Broker blames the slippage on news driven volatility and fast moving market.

If that's the case, shouldn't I be seeing subsequent 7 to 8 tick updates on same side (Ask or Bid) jumping up and down erratically?
But I don't see that. I see up to 7 or 8 subsequent tick updates still at same price at which my order was placed.

The constant subsequent tick updates suggested to me, within the same second there were multiple opportunities to fill my
order at the favourable price level but wasn't done so. I suspect some dishonest price baiting and/or order manipulation here, either
by broker or its LP (since it's a STP broker).
The broker has rejected flat out to my complaint and insisted that was due to fast moving market and therefore no reversal of my
losses.

Has anyone else reported similar experience above and can point me to the relevant case and review?

More importantly, do I have enough ground and basis to file a court case against the broker here yet? I have compiled and done lots
of data/logs analysis on my EA already and have already provided to the broker.

Thanks,
FXD

 

[fxdaemon]

Further digging and research into my understand of "slippage" parameter in the context of MQL4 OrderSend() function, what appears to be the offical
MQL4 documentation at Opening and Placing Orders - Programming of Trade Operations - MQL4 Tutorial stipulates the following:

price is the open price. It is specified according to the requirements and limitations accepted for making trades (see Order Characteristics and Rules for Making Trades). If the price requested for opening of market orders has not been found in the price thread or if it has considerably outdated, the trade request is rejected. However, if the price is outdated, but present in the price thread and if its deviation from the current price ranges within the value of slippage, this trade request will be accepted by the client terminal and sent to the trade server.

slippage is the maximum allowed deviation of the requested order open price from the market price for market orders (points). This parameter is not processed for placing of pending orders.

If above are both true, then it's case of blatant day light robbing for all the trades that I have been slipped with maximum slippage value of 1 point.
Since the broker in question is a 3- and 5-digit broker, my slippage value specified in OrderSend() in turns equals 0.1 pip. How on earth could my orders
ever be filled at 5-pip or more away from the desired price??? Isn't this clear evidence of manipulation of their environment support for EA
trading is not compliant as per MQL4 documentation? Either way it's day light robbing and I really want to get to the bottom of this.

Thanks,
FXD

 

[workitout]

Well, if your EVERY order is executed with 5-20 pips slippage, their platform sucks. STP broker just transmit orders to LP and the speed of this process determine size of the slippage.

Next question is: have you ever get positive slippage? I mean when the slippage was in your favor.. I had several cases with my ECN broker located in EU, there was instant funds crediting and it generally a good token that broker carries the fair play (google assymetrical slippage for more info). If its the case for you then your broker just have sluggish platform go and check for some other stuff, since there are plenty others to choose from..

 

[fxstrategist]

Interested to see how the case develops, but make sure you read all the fine print, usually brokers know how to cover their backs.

 

[fxdaemon]

Well, if your EVERY order is executed with 5-20 pips slippage, their platform sucks. STP broker just transmit orders to LP and the speed of this process determine size of the slippage.

Next question is: have you ever get positive slippage? I mean when the slippage was in your favor.. I had several cases with my ECN broker located in EU, there was instant funds crediting and it generally a good token that broker carries the fair play (google assymetrical slippage for more info). If its the case for you then your broker just have sluggish platform go and check for some other stuff, since there are plenty others to choose from..

That's a good question/point and lucky I have the stats handy:
1. Out of 766 Long orders, only 6 had favourable slips and maximum of that was half a pip.
2. Out of 391 Short orders, none had favourable slip.

As far as I can see, it's very one-sided slipped for than 1000 trades so therefore looking very suspicious.

Thanks,
FXD

 

[workitout]

scalp ea on stp price would be tough one. market order from 5 pips or above (as high as 20) means you need a 5 pips stop level broker company.
reason why most order at loss is the slippage, this feature are basicly construt from stop level, combine with spread, and also freeze_level.
i have hard time on ea development for scalp strategies, sometimes your strategy are not bad at all but couldnt adapt to your broker price enviroment, been enchance my ea traded on armada market, and finally found suitable set.

 

[LoRio]

Further digging and research into my understand of "slippage" parameter in the context of MQL4 OrderSend() function, what appears to be the offical
MQL4 documentation at Opening and Placing Orders - Programming of Trade Operations - MQL4 Tutorial stipulates the following:

price is the open price. It is specified according to the requirements and limitations accepted for making trades (see Order Characteristics and Rules for Making Trades). If the price requested for opening of market orders has not been found in the price thread or if it has considerably outdated, the trade request is rejected. However, if the price is outdated, but present in the price thread and if its deviation from the current price ranges within the value of slippage, this trade request will be accepted by the client terminal and sent to the trade server.

slippage is the maximum allowed deviation of the requested order open price from the market price for market orders (points). This parameter is not processed for placing of pending orders.

If above are both true, then it's case of blatant day light robbing for all the trades that I have been slipped with maximum slippage value of 1 point.
Since the broker in question is a 3- and 5-digit broker, my slippage value specified in OrderSend() in turns equals 0.1 pip. How on earth could my orders
ever be filled at 5-pip or more away from the desired price??? Isn't this clear evidence of manipulation of their environment support for EA
trading is not compliant as per MQL4 documentation? Either way it's day light robbing and I really want to get to the bottom of this.

Thanks,
FXD

How many times do you retry for a fill ?
Did you code the EA ?

 

[fxdaemon]

How many times do you retry for a fill ?
Did you code the EA ?

I dont do re-try at all.It's either filled or not. But so far all orders executed and undertandably since they can slip me big time to their favour but at my expense.
Yes, I code the EA myself.

Thanks,
FXD

 

[fxdaemon]

scalp ea on stp price would be tough one. market order from 5 pips or above (as high as 20) means you need a 5 pips stop level broker company.
reason why most order at loss is the slippage, this feature are basicly construt from stop level, combine with spread, and also freeze_level.
i have hard time on ea development for scalp strategies, sometimes your strategy are not bad at all but couldnt adapt to your broker price enviroment, been enchance my ea traded on armada market, and finally found suitable set.

2014.10.28 14:42:01.088 CHFJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 EURJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 GBPJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 NZDJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 AUDJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 USDJPY Minimum stop level: 0.000000, freeze level: 0.000000

stop and freeze levels are interrogated from MarketInfo() but both reported as 0. Either my EA is wrong or broker platform does not return the info.

Thanks,
FXD

 

[workitout]

2014.10.28 14:42:01.088 CHFJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 EURJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 GBPJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 NZDJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 AUDJPY Minimum stop level: 0.000000, freeze level: 0.000000
2014.10.28 14:42:01.088 USDJPY Minimum stop level: 0.000000, freeze level: 0.000000

stop and freeze levels are interrogated from MarketInfo() but both reported as 0. Either my EA is wrong or broker platform does not return the info.

Thanks,
FXD

i do the same research on my previous broker, and i consult to my coders, i dont write the code, i just do with the trading strategies.
as my coders state, there's a time when the freeze level and stop level moved (widen), just like spread does. my case is my ea wont put any stop level, at first week ea working fine, but then i put a complaint to the brokerage, in the next few days my ea works normally. and i just realized : my ea wont put any order, because the code limitate for given maximum stop level and freeze level (a feature added by my coder, which i dont ever knew, besides i would not understan either until this case happen), as the stop level and freezelevel widen as result the stop order are not executed.
in your case, for example broker's price given spread at 3, at times order executed, the stop level or freeze level change it a matter of second, which resulted, they slipped for any few pips, simply is an extra second of execution there's minor spread added besides the initial one, this oftenly happen on ecn price feed type as the market movement are really fast, resulted : fast execution, i means all execution.. entry execution, exit, a slippage execution, a freeze execution.
hope to got the point, this one are based on my own experience, feel free to treat it as single opinion from a mere individual trader.
good luck with your case.
no matter what the result is.. you'll recover.