HFT is growing fast in FX. Virtu, a HFT firm famous for having a SINGLE LOSING DAY IN THE LAST 4 YEARS of trading, had the biggest growth last year in FX: image

Market-making HFT algorithm

I have actually used 400:1 leverage (I had to ask it from FXCM, since the default is 200:1). I used it to load up on EUR/CHF when it was close to the peg (as in 5 pips close). Let's just say that I won 300% in a single day when it finally took off. ...

Hedging vs Stop Loss

I understand that. Spyderman was asking how you can replicate the milipede method without hedging. I showed him how. Maybe he already knew that. I can see why having equally spaced longs at round numbers can be easier to handle mentally than random ...

Hedging vs Stop Loss

I have done similar trades without using hedging. The key is thinking in total position size, instead of individual trades. Your case: 1 OPEN LONG at 1.3000 1 OPEN LONG at 1.3100 1 OPEN LONG at 1.3200 1 OPEN LONG at 1.3300 1 OPEN LONG at 1.3400 1 ...

Hedging vs Stop Loss

From my understanding the millipede method is about opening many small trades in the direction of a big trend that you are expecting to begin, until a few of them catch on and grow legs. And what do you hedge? The small countertrends that develop ...

Hedging vs Stop Loss

That is correct. But you would have a difficult time googling about a disease using terms like "my head is pounding, I have fever and I can't swallow". Much easier to google for "flu disease". (And yes, I know that by googling that phrase the first ...

Do you believe this market is random?

The technical term for the different types of market conditions you are talking about is "market regimes". The most common ones are momentum (trending) and mean-reversion (ranging). But there are other axes that you can measure against (volatility, ...

Do you believe this market is random?

Trading xxx/111 and 333/xxx together is the same as trading just 111/333 (or 333/111). The math says so. But of course, some people here believe that math somehow doesn't apply to forex, that forex transcended basic math

Hedging vs Stop Loss

I understand your point. I think another analogy would be useful. People are taught in high school classical mechanics, and that is useful for real life. But we all know that it's not really correct, and that there are more "correct" kinds of ...

Hedging vs Stop Loss

Logistically speaking yes, hedging in MT4 is simpler because MT4 is a POS platform with no real position management capabilities. The proper solution is having an adequate Order Management System, then a trader wouldn't have to us such expensive ...

Hedging vs Stop Loss

That would be fine and dandy if they were perfectly equivalent. But they are not. You'll pay the rolls, and there is the risk that your hedged trades are blown out of the water if the spread increases for whatever reason. There were situations when ...

Hedging vs Stop Loss

You're thinking in trades, I'm thinking in positions. I closed 2 trades (or 30% of the position) because I estimated that the probability of the market moving in the position direction decreased. When thinking in positions, it doesn't matter what ...

Do you believe this market is random?

I was once a hedger ( url ). But I was puzzled why none of the professional trading platforms had hedging capabilities. It seemed weird that professionals would be deprived of this "valuable" technique. And smart people were saying that I was stupid ...

Hedging vs Stop Loss

I wish there was a Forex Factory filter setting: "Don't show posts from people who hedge". The signal/noise ratio would massively increase. Of course, 95% of posts would also disappear if such a filter was enabled

Hedging vs Stop Loss

Did you ever had a live account? I watched your recent TradeExplorer account, and I saw a lot of mistakes that I consider newbie's trap. Hedging, closing only winning positions, bragging after a winning trade (and then inevitably followed by a big ...

Do you believe this market is random?

Python is indeed 100 times slower than C++. But MT4 is also 100 times slower than using a co-located native API interface to your broker. So using MT4 is like using Python. If you want to do HFT, you need to ditch MT4 and move to something like a ...

HFT strategy development: STRONG C# C++ Developer required

Jason, I would love if FXCM would start offering binary options. All the existing binary options brokers that I could find look very scammy, the only reputable ones were Saxo Bank (but their binary options are not really binary options) and ...

FXCM Discussion

Trading $10M means that you probably have an $100K+ account. You have a few other options in that range - Dukascopy, LMAX, Saxo Bank come to my mind. Do you still trade mainly with FXCM? If so, why? Are the other options even worse? I trade $5M ...

FXCM Discussion

There is another reason to offer negative balance protection: to attract clients. Yes, you lose on some clients, but you will attract many more. This is one of the main reasons why I trade a big account with FXCM, even if they have worse spreads. ...

FXOpen AU Discussion

Obviously. But $1 mil is quite low in my opinion. In US the minimum is at least $20 mil. FXCM for example, one of my brokers, has $276 mil net capital, and $1190 mil client funds. So their own funds cover 1/4 of the client funds, which allows them ...

FXOpen AU Discussion