Recently, much attention is paid to the improvement of the Forex trading means. The new technologies of the providing an access to liquidity, new accounts types, different sizes of leverage, different ways of depositing and withdrawing funds – all this gives an opportunity to trade more comfortable and profitable.
The developments which are necessary to the ordinary trader
Some developments, but not all of them, are interesting to the most traders. For example, the ability to trade via the FIX protocol, or so-called high frequency trading, allows to place a trade order not for 20 – 30 milliseconds, as it occurs in the MT4 terminal, but for 1 – 2 milliseconds. It may seem that it gives a great advantage over other traders, because it significantly reduces the likelihood of slippage, and the transaction will be committed at a better price. This is true. However, is the private trader needs of it so much? Probably, not.
For whom the FIX protocol was created?
The main advantage, for which the possibility of high-frequency trading was developed, is placing of a large number of orders in a very short time. This capability is fundamental for traders who trade with the large amounts. This is market makers. It is in their interest to establish, for example, a hundred orders by $ 100,000 than one order by 10 000 000, because they can gain the necessary position without moving prices against their interest. Most likely, it will be pending limit orders, but not market orders. And, probably, they will be exhibited by a robot.
When the FIX – API robot is start to work
This method of placing orders is using when there is a false breakout of the support or resistance level. If we will consider the prices behavior at this point on a minute chart, and analyze a vertical volume, it often happens that there is a surge in volume on the breakout candle. A price, for example, come under the level and shoots back. A large limit order, established by the market maker before he initiates the breakdown, is triggered. But when the price retests this level after some period of time, you could notice that the vertical volumes are also very high. This means that market orders are “eating” by the limit orders that market maker had set in between the market price and the newly installed local extremum with the help of FIX API technology.
Now let’s think, is an ordinary trader, who enters the market with an amount of several tens of dollars or even less, needs of this technique? The market will not even notice this order, because millions are needed to move the price by a one point. Moreover, to set a one limit order at a distance of a few points or tens of points from the market price, it will be enough a conventional technology time according the MT4 terminal work. The limit orders don’t have a slippage.
Still, you may be interested how to create a robot that trades via the FIX protocol. A specific programming language, designed specifically for this protocol is used for this. That language has nothing general with MQL.
Now let’s think what is needs to your robot began to work, provided that the FIX protocol works not through a specific broker, but directly with the central processing system of the financial market data? You need the exit on the financial market without going through a broker. This possibility is unlikely even to people who have considerable amounts. It is simply not affordable for an ordinary trader.
More logical would be to obtain an access to FIX API trade from your broker and adapt your robot, created with the MQL language, to this protocol. Already there are developed MT4 – FIX API terminals, which have a familiar to us indicators, scripts, and in such platform the robots designed for MT4 work fine, but order execution happens at the FIX protocol speed.
Forex Indicator recommend to study the Ichimoku indicator working mechanism to build an effective trading on the Forex market.