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Latency and Slippage: Why Your Copies Don't Enter at the Same Price.
This episode explains how latency (delay from signal to execution) and slippage (the difference between the expected and filled price) affect copy trading. It outlines why these frictions occur along the order path, especially during fast-moving moments or high-volatility news, and provides practical steps to minimize their impact. The guidance covers technical setups, platform configurations, timing and asset considerations, how to measure actual results, how to evaluate signal providers, and risk management. The core message is to treat copy trading as an engineering problem with concrete actions you can implement today to protect and improve your entries.
Key takeaways:
- Use the same broker or a fast-execution setup, ideally with no dealing desk and good liquidity in your copied instruments.
- Consider a private VPS near your broker’s server to reduce latency; keep your computer light and stable.
- Tune platform settings: set a slippage tolerance, choose between market vs limit orders, set per-instrument caps, and decide whether to copy opens or closes based on the strategy’s tempo.
- Be mindful of timing: major liquidity pairs and inactivity around news generally have lower slippage; avoid copying around volatile moments unless you’re prepared for larger moves.
- Measure reality: export copied trades, compute mean/median slippage, log time/instrument/news to identify patterns.
- Evaluate signal providers for execution quality, not just profitability: look at average trade time, hours, instruments, risk coherence, and how they react to news.
- Some brokers cap positive slippage or ban it; read contract terms to know how favorable moves are treated.
- Practical actions: test latency, try small price tolerances, split copies between market and limit orders, adjust tolerances during high-volatility periods, and pause copying during unclear events.
- Useful tricks: apply tight limits for broad strategies, use market orders for continuation trades with high probability, and consider copying the close price in trend-following strategies.
- Risk management: set maximum daily losses per day, per provider, and per instrument.
Remeber you can contact me at
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By Andrés DíazThis episode explains how latency (delay from signal to execution) and slippage (the difference between the expected and filled price) affect copy trading. It outlines why these frictions occur along the order path, especially during fast-moving moments or high-volatility news, and provides practical steps to minimize their impact. The guidance covers technical setups, platform configurations, timing and asset considerations, how to measure actual results, how to evaluate signal providers, and risk management. The core message is to treat copy trading as an engineering problem with concrete actions you can implement today to protect and improve your entries.
Key takeaways:
- Use the same broker or a fast-execution setup, ideally with no dealing desk and good liquidity in your copied instruments.
- Consider a private VPS near your broker’s server to reduce latency; keep your computer light and stable.
- Tune platform settings: set a slippage tolerance, choose between market vs limit orders, set per-instrument caps, and decide whether to copy opens or closes based on the strategy’s tempo.
- Be mindful of timing: major liquidity pairs and inactivity around news generally have lower slippage; avoid copying around volatile moments unless you’re prepared for larger moves.
- Measure reality: export copied trades, compute mean/median slippage, log time/instrument/news to identify patterns.
- Evaluate signal providers for execution quality, not just profitability: look at average trade time, hours, instruments, risk coherence, and how they react to news.
- Some brokers cap positive slippage or ban it; read contract terms to know how favorable moves are treated.
- Practical actions: test latency, try small price tolerances, split copies between market and limit orders, adjust tolerances during high-volatility periods, and pause copying during unclear events.
- Useful tricks: apply tight limits for broad strategies, use market orders for continuation trades with high probability, and consider copying the close price in trend-following strategies.
- Risk management: set maximum daily losses per day, per provider, and per instrument.
Remeber you can contact me at