Originally posted by mwaschkowski
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It's a fundamental problem of signal copying (or Darwinex, which is also a copying service - though they don't mention it).
I'm no expert, but the process for a (buy) trade at market would be - best case :-
1) Buy at Ask price sent to broker
2) Some delay by the broker
3) Accepted by broker, trade placed at Ask price
Now with a trade copier (I'll annotate the slaves as A,B,C etc)
1) Buy at Ask price sent to broker
2) Some delay by the broker
3) Accepted by broker, trade placed at Ask price in step 1
A) Buy Signal sent to copier slaves
B) Some network delay
C) Slaves request buy at current Ask price
D) Some delay
E) Accepted by broker, trade placed at Ask price in step C
The delays are normally very low (maybe 500m/s), and the price doesn't move that much.
If the strategy opens / closes trades quickly you will bleed profits gradually.
If it opens / closes trades at times of high volatility (large changes in price) you will lose money more quickly as the broker will be expanding the spread at this point - and you will get the worst price.
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