HFT EA with IC Markets

[MMBInvest]

Hey fxDreema enthusiasts,

I wanted to take this forum as a chance to elaborate on my latest findings about "HFT" EAs. I know that this term is not used in the correct way, however, an EA that trades every tick trades in a high frequency - so you want to live with that term.

I saw this YT video and thought I want to give it a try instead of paying 1000 USD. The logic behind is very simple and obvious, hence I recreated it with our beloved software (be blessed fxDreema - you are my favorite software and I am impressed every day that I use it). Actually I created an advanced version that can do a lot more - never mind.

https://www.youtube.com/watch?v=GhRwsoDssLk

I started backtesting --> it looked too good to be true
I started Demo trading --> it looked still fantastic
I started Live trading --> a nightmare

The money was wiped six times faster than in backtesting and Demo. For the simple reason that in backtesting and Demo you have a real live stream of data, but the Broker (at least IC Markets) does not provide those prices to you. I fact, the provide the next available price, which is never in you favor.

So that makes me question at once the video, but also of course if so called "HFT" EAs make sense at all --> at least not this strategy and not with IC Markets.

Here is the official statement of IC Markets which I got as I told them, that the losses of the trades do not fit to the orders that were sent by the EA.

IC Markets: "However on live trading accounts the SL is the triggering price and it is closed on the next available price which can be different due to slippage."

Further: "IC Markets offer its clients with a market execution model. This means all the trades are executed at the first available price received from our hedge counterparties once an order has been triggered. As we do not have dealing desk intervention, we are not involved in creating the prices that we show you. Thus, are not able to offer guaranteed executions exactly at your requested prices, we are simply streaming the prices that we receive."

For your understanding... instead of max. expected losses (due to fixed SL) which was 1,82 USD the EA realised up to 4 USD on a regular base. In Demo and backtesting the losses were 1,82 USD max but usually much lower.

For a lot of you guys that might have been obvious, whilst for me it was a learning which I wanted to share. As those topics are also found via google - I hope it can help not to waste the time of one or the other EA builder.

Have a nice day

[jstap]

This is my understanding as well, worded differently but, brokers are not trying to scam you, although that doesn't mean it won't feel that way at times, the broker used can make a big difference, scalping EAs are never as good in live as they are on backtest/demo.

If I create an EA I stay away from scalping, "HFT" is high frequency trading, so to me anything that happens multiple times frequently.

I thank you @MMBInvest this is information many people need to understand while creating EAs, hopefully, this is not just to get people to click your link...

[biztet]

Just follow the trend.
That's good enough.

[jstap]

Good enough but not scalping.

[MMBInvest]

@jstap Indeed. No this is not "my link" nor my EA. All I say in this post speaks against whats happening in the video. I just don't think that was is shown there is possible - if at all, I hope that with this post nobody will buy the EA there. Anyways the fellows here are usually able to create such an EA themselfes.... and I would also call it scalping rather than HFT - but tbh, I don't care so much about that as others do ;o)

One Info I forgot to mention is, that IC Markets only allows 2000 Messages (even less trades) per day, otherwise they will block you account - no matter if Demo or Live - just for your Information.

[VHV-Profit-Masters]

Thank you very much for this valuable information, and apart from whether or not it is HFT or whether it is scalping, it is really very useful and from me, receive a sincere thank you for your time in making this post.... It would be wonderful to be able to see your scalping project. and try it, maybe you can contribute something, who knows... anyway, I really appreciate your contribution, friend... I'll be waiting in case you decide to share any thread about that project you mention.

[l'andorrà]

@MMBInvest Very interesting info. Thank you for sharing.

[MMBInvest]

Here is the very basic of the project:
https://fxdreema.com/shared/wrIfTOv0d

No Rocket Science in this EA/Strategy

[MMBInvest]

@jstap btw. I bought your book and I was really surprise how similar we use fxdreema - same sence of design and what I took over is the placement of the boxes in order to have more space for more boxes. I really loved that idea. Good book ... well done!

ps.: of course to you - lol

[jstap]

@MMBInvest Did you mean to send that to me not yourself? If so thank you

[VHV-Profit-Masters]

@MMBInvest Thank you very much for sharing your project, my friend. You’re amazing! I’ll review it, and if I come up with any ideas, I’ll let you know. Thanks for such a wonderful contribution.

[MMBInvest]

@jstap of course to you ;o)

[MMBInvest]

@DragonZueloTrends sure - tell us if you find something out! Thank you

[sktsec]

@MMBInvest
I am afraid it is just a fake video

[Us30]

NEED EA US30

[Mengann22]

@l-andorrà Dear Good Man , Can u share project , i will test it and feedback

[Papzo113]

@MMBInvest

one of the other things i saw when trading on live account with ic markets, is that the stoploss is not really placed where you want everytime the orders are placed. So i think adding some stoploss threshold will do things like(if your stoploss is placed more that the required the bot should automatically delete the pending order and try to place a new one .if still the stoploss is greater than required the bot will try to delete and place a new order with your correct stoploss. Slippage is not really a problem cause you can adjust the bot's maximum slippage and if the maximum was hit the bot won't take a trade.. So i also know that guy who sells an hft bot for 1000usd i've studied his bot ..how far is the stoploss placed etc things like that. I've noticed that his bot's stoploss is reepected and its not breached..i once his bot's comment saying (sl violated)after an order being cancelled then it came to my mind that he might have set his hft bot some strict rules when the ic broker tries to put it where the bot does'nt want which it will automatically cancel that order.. i'm saying what i've learned i'm seeking help too i know if we do this together we won't fail..but some of us lack capital as we are able to add some few restrictions to the bot about stoploss but don't have the money to test on a live account. So this is my side of the story ..

[Papzo113]

@Papzo113

The main reason the HFT BOT is loosing on a live account is that the losses are big than anticipated which end up adding up and blowing the account ..

i suggest adding some intructions about the SL make it strong so even if the brokers try to move it a few pips a bit the bot automatically deletes that order as it will result in bigger losses , the second thing is latency we should try reducing it ..maybe by renting a virtual platform...please someone who hft reply my opinions as i stand to be corrected...

[Byens]

there is no way you can win after last 2 years, they have some plugin in metatrader to prevent their "loss" from this trading system

[Hasgtim]

@Byens

When it comes to the the plugins is best to see what broker allows hft/scalping and has a fast execution and low latency and what type of hft strategy are you using if it’s arbitrage than most likely their are plugins that prevents such strategies.

Not all pairs work with hft so you need to monitor the spread, it has to be a low spread and a high liquid market. Trade when it’s allot of volume depending on your strategy.

Use VPs that has good resources and have below latency 10ms the lesser the better. Your VPs location must be in the same place as your broker. For example if you wanna use icmarkets their server are located in NY so your VPs must be in NY to minimize the latency.

For example if you wanna use us30 for scalping/tick scalping. The US30 can be a good pair for tick scalping on IC Markets' MT4 platform, especially due to its volatility, liquidity, and the broker’s low-latency ECN execution. The best times to trade the US30 for scalping are during the US market open (9:30 AM EST) and avoid major news events that influence US equities. This is when you are likely to see higher volatility and faster price movements and can cause more slippage.

However, you should monitor the market conditions, particularly during high volatility periods like the US market open and major news events mean high probability of slippage. It’s essential to have a good risk management strategy in place to minimize potential losses during sudden price movements.

Hope this helps