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Forex Megadroid Broker Spread Analysis — 4 Comments

  1. hi,i have an account with InterbankFx and i have noticed a big raise in spread during the last month.MD did made some trades but it surely lost big market movements ,as these, when happen the spread is as high as 10!.
    MD came with errors as
    MegaDroid EURUSD,H1: Strategy1: Safe spread limit exceeded: spread = 110
    MegaDroid EURUSD,H1: Strategy1: Using DayDirection filter
    when i raised a ticket for these errors their answer was Md only trades with spread 3 or less.It won’t trade unless these is true.So i thing even if i raise the slippage setting won’t make any difference to robot performance.has anybody tried to raise slippage in MD settings?

    • Hi Nick,

      I actually get the “Safe Spread Limit Exceeded” quite often on all 9 of my live trading accounts. While it’s frustrating, missed trades are just a reality on LIVE Megadroid accounts. If you look through my daily results, you’ll often see trades in only a few of the Megadroid accounts. This is often because trades have been rejected at the other accounts because of the spread or some other reason.

      IMO the key performance indicator is how many pips and trades you get on a particular broker over a given month. That’s ultimately the bottom line. So the Monthly Results are my performance benchmark.

      I’ve had 100+ pip months on brokers that had countless spread exceeded messages in the log. If a broker starts performing poorly because of increased spread or some other reason, I simply reduce the size of the lots I trade at that broker, and increase the size of the lots I trade at a better performing broker. That’s why I trade on multiple brokers and monitor the results closely. I’ve been doing this since April 2009, and it’s been a great way to adjust to changes in broker performance and optimize my returns.

      On InterbankFx..

      I too have noticed an increase in spread recently, especially over the past 2 weeks. Their spread has been peaking around 7 to 10 pips during the Megadroid sessions, and the average spread is up around 2.4 pips whereas before it was only around 2 pips.

      This might mean that the good InterbankFx performance will deteriorate over the next few months. But there’s some brokers with great spreads (e.g. MB Trading) that aren’t doing well for some reason. So a good spread isn’t the only factor.

      Ultimately we’ll just have to see how they go over the next few months.

      Megadroid slippage settings..

      That setting will not work on “Market Execution” type MT4 brokers like InterbankFx. It only works on Instant Execution Brokers. (see MT4 Brokers – Instant Execution Vs Market Execution).

      InterbankFx only changed to Market Execution 2 weeks ago.

  2. Is MB a commision based broker? With many trades closing close to breakeven this will make a big difference. I found this out when demoing ATC Brokers, the end results werent any better than my FXDD account.

  3. Hi Ken,

    Yes, MB Trading is a commission based broker. They charge $30/mill per side. So the cost is about 0.6 pip per trade round-trip.

    I haven’t included the cost of commissions in the results. Perhaps I should. It’s pretty easy to calculate i.e. if Megadroid places 10 trades per month on the MB account, that’s 10 x 0.6 pip = 6 pip extra cost because of commission.

    I might go back through the monthly results and add the commission cost, so that a balanced comparison can be made with the other broker accounts.

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