Lets see what price price differences are and how they effect profitability and how to mitigate affects of it.
Reasons for price differences
You may notice that your signal provider’s entry prices and close prices are different from your Metatrader account’s entry prices. This may cause by several factors
- Your signal provider took time(few seconds to few minutes) to post the signal on Telegram. In that time market may move to another price.
- In times of high volatility, your broker might not be able to execute trades to a given entry price.
- Forex market is not centralized like stock markets. Therefore, each broker have price differences between them. You can more read about it here.
- Difference in spreads and execution methods(Dealing desk and None-dealing desk) used by different brokers.
- Time delay from T2M copier to process signal. If good computer performance and network conditions exist. The copier can detect a signal and send to mt4 in less than 1 second. The broker may take another 0.1 to 2 seconds to fulfill the orders(depends on broker execution and broker server distance).
Difference in profits
Differences in prices and delays in execution will reduce your profitability. Therefore we recommend following actions to minimize the affect
- Matching the broker and account type of your signal provider’s and your account. Please note that brokers have difference account types. Matching just the broker will not ensure matching prices.
- Have a stable internet connection with faster response times.
- Have PC/VPS running with recommended specifications.
- Request your signal provider to reduce the delay in posting signals.
- Try different Trading options > open modes in the copier EA settings to manage risks with different open prices.
Failing to move the stop-loss to breakeven point
Due to differences in prices the copier may fail to move the SL to the entry/ breakeven point on breakeven command. Let’s try to understand the problem with an example.
Example:
Your signal provider has a trade opened in his account
Signal
EURUSD BUY @ 1.0000
Your account opened the same trade 5 pips away because your signal provider took 1 minute to post the signal and the market is experiencing high volatility.
Actual trade
EURUSD BUY @ 1.0005
After some more time, EURUSD is now hovering at 1.0003 and your signal provider is +3 pips up and you are -2 pips down. Your signal provider decides to moves his Stop-loss to breakeven point.
The problem comes when you try to move the stop-loss to your breakeven point(which is 1.0005) it is impossible because you are still below that price(current price is 1.0003).Solutions:
Set a negative pip offset for breakeven commands in EA setting.
if we use the example above:
pip offset is set to -5 pips.
This will make the copier to place the Stop-loss at 1.0000 (1.0005 - 5 pips = 1.0000)
This will lock the trade with a 5 pip loss. Accounting for the loss of price difference between accounts and time delay.
2. Set up a trailing stop-loss in EA settings.
Instead of a negative pip offset, you can use trailing stop to control your losses. However this will deviate you from your signal provider's strategy.Failing to place stop-losses and take-profits
Due to differences in prices the copier may fail to move the Stop-losses and take-profits. It is easier to explain the issue with an example.
Example (sharp stop-losses):
Your signal provider has a trade opened in his account with a 2 pip stop-loss
Signal
EURUSD BUY @ 1.0000
Stop-loss @ 0.9998 (2 pips)
Your account opened the same trade 5 pips below signal price because your signal provider took 1 minute to post the signal and the market is experiencing high volatility.
Actual Trade
EURUSD BUY @ 0.9995
Stop-loss @ 0.00 (0.9998 is higher !!)
In this case, the stop-loss of 0.9998 is invalid because for buy trades, stop-loss price cannot be higher than the current market price.
For sell trades, the stop-loss price cannot be lower than the current market price.Example (sharp take-profits):
Your signal provider has a trade opened in his account with a 2 pip take-profit
Signal
EURUSD BUY @ 1.0000
take-profit @ 1.0002 (2 pips)
Your account opened the same trade 5 pips above signal price because your signal provider took 1 minute to post the signal and the market is experiencing high volatility.
Actual Trade
EURUSD BUY @ 1.0005
take-profit @ 0.00 (1.0002 is lower !!)
In this case, the take-profit of 1.0002 is invalid because for buy trades, take-profit price cannot be lower than the current market price.
For sell trades, the take-profit price cannot be higher than the current market price.Solution
1. Test scalping signals.The copier can copy a signal under 1 second with ideal conditions, however this may not be enough for good scalping.
2. Set fixed stop-losses and take-profits under EA settings.