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Interactive Broker: Slippage. What is your experience
Result is not bad, about 5 time my initial capital for the last 12 months with EURUSD. But, I realised that i may not have taken the slippage in consideration. MC express is slippage in $ while i was thinking it was in pip.
Since my position varies for each trade, from 25 000 to 500 000 units, what kind of slippage value should i put on.
What is your experience with IB.
Any comments greatly appreciated
Have a good day
Martin
Can you help answer these questions from other members on NexusFi?
I would say at least 2 pips. Just monitor the bid/ask spread, what is the normal spread? And in live trading, do you get filled at the bid/ask or is the spread wider?
2 pips is a bit pessimistic, it will be 1 tick most of the time, 1.5 sometimes, and less frequently 0.5 and 2 pips.
So I'll say a value between 1 and 1.5.
I would agree with @sam028. During the Tokyo session, the EU spread has been between .5 and 1.5 pips on IB. However, adding in the commisions on 25K can effectively make the spread 2 pips
My question is really, what is your experience with IB slippage on Forex.
I had put a value of 20$ /trade, but it may not be enough
Since my average calculated position is 300 000 * 2 pip = 60$ per trade to be use. This should be the average worst situation.
This is a challenge. My equity curve was supperb with 20$, nearly 400% gain over last 12 month. With 60$ as the slippage value, the curve is still posiive but look like a rollercoaster for the wildest kids. Not good for the stomach:puke:hehe!
Martin
A few month back - I have tested an automated forex strategy with IB in sim mode only. On a 100K position my slippage varied from 5$ to 20$. pr transaction.
The best way to test you strategy is to try it out in sim mode and compare the results with back testing
Hope this helps
rgds
Michael
If you had 20$ slippage for 100k, then 60$ for 300K is realistic. I need to go back to my rules to be able to get a positive equity curve with that slippage value.
