Black box trading FX

Discussion in 'Automated Trading' started by Futures_Man, Aug 6, 2005.

  1. Would trading systems (strategy) have an advantage trading on Currenex, then trading with one market maker API?


    If I have a system I developed for FX in TradeStation

    I trade it with one liquidity provider (X) getting a 3pip spread

    I also trade it connecting to Currenex with a 3pip spread (clearer marks up the price,)

    Is their an advantage trading the systems in Currenex over the one Liquidity provider?
  2. mahras2


    Not understanding the question properly. If your automated system is trading the interbank market successfully why would you move somewhere else?
    If you could explain the situation it would be better to answer.

  3. what i want to know is ....

    lets if there is a difference between trading a system with one market maker or trading it with an interbank dealing system curenex while receiving the same spread
  4. JackR


    I'm not a FOREX trader.

    If I were evaluating a black box system ( I assume it is a system as opposed to discretionary) such as you describe I would get both FOREX feeds running side-by-side, capture them, and do a comparison. Do the prices track?

    In other markets there is only one best bid and offer. FOREX does not seem to have a national BBO. I guess this is due to many brokers making markets (we called them bucket shops in the old days) as well as some brokers still acting like brokers (such as IB). In addition, spreads also seem to vary all over the place. I guess this is used to establish a minimum "house" edge for the bucket shops.

    Thus, the side-by-side evaluation seems to be the way to go.

  5. mahras2


    The data from the different brokers can very much vary as posted by the user prior in FX. It really is a personal choice...if your system is robust it should be working on any data feed you put it through. Keep in mind execution is key as many of the brokers do not give fills or honor stoplosses during volatile times (I have had very bad experiences with this).

    I have seen instances where on an intraday level sometimes a system will work better with one broker than the other as say your stop is at 1.2012 one broker may quote the low to be 1.2011 while the other quotes it at 1.2013. Over the long term though it should even out and shouldnt have a big lasting impact on performance.
  6. So Trading with curenex is better since you are not dealing with one market maker , no?
  7. auto


  8. mahras2


    Yes as there are several bucketshopish type brokers in FX. Currenex is solid. Personally I use interbankfx. Their hedging is done by outside entities and their platform is solid for automation candidates.

    I am more of a positions trader. Tried intraday trading/scalping but never could get one automated. Oh well some people are suited for different styles. Those numbers look solid auto.
  9. hi,
    does anyone know which front-end to use if i want to simultaneously display say the currenex quotes & liquidity info, and for instance's quotes and even a 3rd API-enabled one (say fxcm) for a given curr. pair on my trade station? (e.g. eurusd1, eurusd2, eurusd3)
    purpose being to avoid overloading my PC with 2 or 3 flash apps, 1 citrix, 1 or 2 java apps running concurrently...and risk a shutdown at the wrong moment... i do have 2 PCs, 2 hubs etc at home as a back-up but i figure if i cld integrate all that stuff into a single super-fast trade station via the APIs, that'd be a far superior working environment?
    wld TT's x-trader be the way to go? any other?
  10. auto


    Hi Maha,

    I aim for 15-50 pips .. not really positions :), sometimes takes only a few minutes to close - not more than a day.

    Right now TRAIN is in beta. Live.

    Do you run automated systems with InterBankFx? Do they have API? Any charges?

    #10     Aug 29, 2005