Any trader trying to handle large accounts with capital from proprietary companies should seriously consider joining a financed trading competition. Accurate execution is essential to overcome these obstacles. Slippage and requotes, though, present two significant challenges for traders on MetaTrader 5 (MT5). Particularly during news events or in turbulent markets, these can sabotage a well-designed entrance or departure.
This tutorial offers simple techniques to reduce slippage and requotes to protect your advantage and increase your chances of passing the challenge.
What are Slippages and requotes?
Usually caused by fast market movement or inadequate liquidity, slippage is when your order is carried out at a price other than the one you demanded.
Requotes occur when the broker submits a revised price because your order cannot be filled at the preferred level, asking if you still wish to move forward. Usually, it does not affect market execution accounts, but this has an impact on instant execution accounts.
Why does it matter in funded challenges?
Most prop companies need:
- High winning percentage
- tight drawdown constraints
- Precise profit goals over a specific time frame
One terrible entry brought on by slippage can cause needless drawdown, miss a stop loss threshold, or lower your risk-to-reward. Every pip counts.
1. Employ a trustworthy brokerage and prop firm:
Not every prop firm has the same trading circumstances. Choose a prop company that:
- Uses ECN/STP brokers with market execution
- Low-latency servers (e.g., New York, London data centers)
- Offers swift execution and close spreads
Examples:
- FTMO: Operates by employing their servers and liquidity suppliers.
- Use Eightcap or comparable brokers for the Funded Trader, E8 Funding:
Tip: Stay clear of brokers noted for heavy requotes or past manipulation.
2. Near Broker’s server, employ a VPS (Virtual Private Server):
Using MT5 on a personal device with little internet will almost surely cause slippage. VPS also assists the best currency pairs in working smoothly. A VPS:
- guarantees 24/7 connectivity.
- increases latency
- Reduces the time taken for order execution.
Recommended latency: Less than 5ms to your broker.
3. Trade throughout hours of high liquidity:
Steer clear of trading when:
- Unless you're a news trader, too unstable session overlaps
- Hours with low liquidity—that is, late New York or early Asian session—
Ideal time to trade:
- London Session: GMT from 8 am to 11 am
- New York Session: 1 PM to 4 PM GMT
These hours provide:
- Stable spreads; better order matching
- Minimize Slippage
4. Instead of market orders, use limit orders:
Market orders have a tendency to slippage.
Limit orders allow you some control over your entry price. On MT5, employ:
- Buy Limit / Sell Limit for retracement inputs
- Buy Stop Limit / Sell Stop Limit for breakouts with regulated entry
This guarantees that you are only full at your chosen price or better.
5. Apply MT5’s “Deviation” parameters correctly:
For market orders, MT5 lets you specify the maximum pips of deviation. This environment determines how far from your desired price you will accept a fill.
Steps:
- 1. Open the order window.
- 2. Choose a reasonable Set Deviation (e.g., 3 to 5 pips).
- 3. Should the price go past this, the order would either be refused or requoted.
This offers some flexibility but guards against significant slipping.
6. Accelerate execution by use of Scripts and EAs:
Usually, manual execution takes more time. Use:
- Scripts for order placement (e.g., 1-click execution with SL/TP)
- Trade managers or EAs automatically execute orders based on indicators.
Benefits:
- Regular posts in quick markets.
- Removes human reaction time.
7. Unless you are ready, avoid trading during high-impact news:
News releases like NFP, CPI, or interest rate decisions frequently include slippage.
Unless you have an established news trading plan:
- Stay away from entries 5 to 10 minutes before and after the news.
- Otherwise, trade only with pending orders using “Stop Limit” features.
8. Use brokers with “raw spread” or “ECN” accounts:
Typically, accounts with raw spreads + commissions offer:
- Tighter spreads.
- Faster execution.
- Less slippage.
9. Backtesting and demonstrating under real-life circumstances:
Before the test:
- Use a prop firm demo account in the same environment as a live challenge.
- Check your setup, VPS, MT5 indicators, and execution speed
- Note slippage at various market sessions.
10. Don't Over-Leverage or Over-Trade:
Larger lot sizes translate into increased slippage, particularly on exotic currencies.
Highly liquid trade major pairings include:
- EUR/USD.
- USD/JPY.
- GBP/USD.
Avoid:
- Pairs with high spread
- Cryptos or indexes throughout illiquid periods
Final notes:
Although they are typically manageable, slippage and requotes can drive one crazy. Technical accuracy is as important as strategy if you intend to pass a financed competition. Ensure your surroundings and tools are as streamlined as your study.