I've been pondering how two traders can use the same setup, same leverage, but end up with totally different outcomes on different platforms.
What could be causing this? Are fees, execution speed, or timing playing a big part here?
This thought popped up because I'm in a trading group where a setup was shared, and everyone jumped in on different platforms. Same parameters yet the results varied. One person even hit their stop loss because of spread differences. So what's actually going on?
What is the names of the exchanges?
Most exchanges will have similar outcomes if it is true that the two trades have the same leverage.
I am using three different exchanges but I have not seen this before.
Or you mean different but similar results? This should not be strange to traders.
You might not know that even with the same pair, if you are trading on different platform the chart will be slightly different because the liquidity and orderbook is not the same. If in exchange A the local top is 0.11 for example maybe in exchange B with lesser liquidity the local top could be only hitting 0.1090 etc. If you want the same result you should use the same platform.
Sometimes, there's flash squeeze in a market with lower liquidity because there might be an ongoing manipulation.
In a nutshell, the outcome is different because the market is different. You can't count on the same strategy if the environment is different and expect the same result. This kind of thing happened too often when I'm trading new coins. Even binance alpha and binance spot price could be different, y'know.
Yeah, this might be the reason, too. The trading volume might be different if the gap is extremely high or low; then, for sure, there are really different results, especially when an exchange has extremely low liquidity pairs.
Might be good, OP will share more details, for example, trades or pairs, much better if he provides these exchanges used.
Haven't you heard of brokerage? Different trading brokers offers the market to you at different fees.. Some have wider spread than others but comes with other benefits..you just have to find that which you are very much used to.
Also you should know that no two trader can trade the same way. You can have same setups, but the results being different is solely because we have different psychology about the market. How trade A would react when the same setup goes into loss or profit would be far different from how trader B reacts when in same position..
Emotions and also other things can interfere decision taking. Two traders don't have the same controls over themselves so that could making them have different decision when they end up their trading.
Timing can also affect on their trading, they will have different target profit they wants to take, that will not makes them have the same time closing their trading.
Don't forget about greediness as they can losing controls if they see the profit becoming big.
I had a similar situation recently. At my partner's request, I set up my trading bot for him via API. We have a financially trusting relationship, so he has access to my wallet on Cryptomus. He was really unpleasantly surprised by the difference in profit. We started digging into it togethersame algorithm, same settings. The spread was eating up his profits; his was wider. And where the bot closed my trades at breakeven, he ended up in the red.
Not sure about leverage these days, assuming that means you work without orderbooks? For reg orders, you would generally get different closing nets for sure, maybe as a result of orderbooks and differently filled orders but that should be very very tiny, and even quite rare, unless your order size is huge.
Can you share the precise trades and platforms? The spread probably explains it... but S/L getting hit suggests a bad setup for the platform reqs?
Seriously OP needs to share more information because I dont understand the different result that OP meant, does he means that everything in the set up was identical from leverage, position size and the rest but different exchange only and the result is actually different like one trade in one exchange ran to profit and the other exchange ran to loss, if its this then I will say its definitely wrong and I have never experienced or even heard of this before,
Things I know will be different is that regardless of the set up details been the same the order book usually causes slight changes in price as explained by some post and as such even if you set profit target as same price on the two exchanges it will both trigger at different times and this is also same for Stop loss, so if the OP is actually experiencing this then its nothing to worry about
You need to mention:
What market are we talking about?What platform?How much difference do the results make?
I wouldn't speculate too much without a clear indication; some of the issues are purely predictable, unless there are platforms with a lot of inherent issues.
It looks like the one exchange you use has low liquidity and experiences slippage.
If you use a new exchange, you can expect poor trading results; instead, trade on an exchange with a high trading volume, such as OKX, Binance, or any other well-known exchange with a high volume.
Avoid trading on new exchanges, as you are likely to encounter a huge gap when trading unless you're targeting a huge move.
Timing plays a very important role, and I believe that might be the reason why different people with same setup had different results. There's also chance that the ones who were in loss might use a bad broker or a fake one pretending to offer genuine services. However, again I believe this could happen mostly because of timing or maybe because of fees as well.
Looks like you already answered the question yourself, have you check the means of "spread" In the context of financial market and brokers and exchange? And also check for the meaning of "slippage." The reason why those traders would have different results is because you are using different platforms which have different liquidity size, bid and ask cost, etc. This is possible in any financial market based on the broker or exchange you are using.
Last month I lost a trade on a new exchange that I decided to try out and it was because of slippage. I already did my analysis on trading view and then entered the trade, set my stop lose and take profit, few hours later the market was pulling down before in continues in the direction I predicted but that pull back hit my stop lose meanwhile on trading view price never got to that level. If I had use bybit to take that trade, my stop lose would not be hit.
I guess you're right.. been doing some research about it too and some said spread, I also got to realize that exchanges offers different perks for each level of traders.. vip, regularly all have slight adjustments to fees etc. I used Bitget regulalry now and I've got a vip tag and I just started noticing the difference in excecution, fees from Bybit and binance(don't have vip tags there?
Oh wow.. yeah just got to know it happens after creating the thread.. so how did you guys remedy the situation?.
Talking about emotions it reminded me of my recent trade on EURUSD pair. It was moving slow, so wasn't patient enough.. my friends hit tp and it chickened out ahah. Trading is a mental game though
I set up a separate bot for my partner, with an algorithm that worked exclusively off his own financial data streams. The bottom line is, fees and quotes vary from one exchange to another, so a trading algorithm has to be tuned specifically for each platform.
It would seem that's exactly what OP meant, but he has replied already to some people, and not to others including me, so I guess he's not interested in sharing the trades or platforms... but seems like Alpen has identified the problem using bots, it literally is just about the spread.
I'm very curious why the spread wasn't factored in when setting those bots about though, seems a big oversight
This is caused by the different liquidity of the trading pair, so the best solution is to trade on exchanges such as Coinbase and Binance. In addition, it must be remembered that each exchange has its own market makers, whose actions are not always synchronous. There is arbitrage to equalize prices on various exchanges, but it is also not instantaneous.
Binance have VIP but they require holding BNB, if I remember correctly it was around 5 BNB but I'm not really comfortable holding volatile coin like BNB if I'm being honest.
Each exchange have their own tier but in my opinion fee was never the problem, it's the order book and liquidity depth that matters when executing your setup.
of course it will happens, you will never get the same results if you trade on two different exchanges. I know you are using the same leverage and the same indicators setup on both exchanges, but you must remember that the coin price on each market will vary. If Bitcoin on exchange A is $71,100, on exchange B it could be lower or higher. This different will affect your trading results. Also, remember about the liquidity and spread. If the exchange has low liquidity, the spread gets wider and it can hit your SL easier. Don't forget that volume and fees also affect the outcome of your position.
I think it could also be the timing of execution, that is the point of entry. Two traders with same setup, same lot size may not enter a trade the same time and that can be a major reason for the difference in results.
A trader may have a wrong entry and enter a trade during a pullback which will lead to loss.