Introduction
The safety of EA (Expert Advisor) operation depends significantly on “whether an order is registered on the broker’s server“.
Pending orders and Stop Loss/Take Profit (SL/TP) registered on the broker’s server will operate autonomously on the broker’s side even if the VPS or EA stops. This provides a major risk management benefit, as orders and positions are protected even if the VPS or MT5 platform stops.
In contrast, market order entry and closure depend on “communication at that instant”.
Diagram ①: Order Type × Server Registration & Latency Sensitivity
| Order Type | Purpose | Registered on Server? | Latency Sensitivity |
|---|---|---|---|
| Market Order (Open) | Open a position immediately at current price | No | High |
| Market Close | Close a position immediately at current price | No | High |
| Stop Order (Buy Stop / Sell Stop) | Open a position on breakout | Yes | Low |
| Limit Order (Buy Limit / Sell Limit) | Open a position on pullback | Yes | Low |
| Stop Loss (SL) | Automatically limit losses | Yes | Low |
| Take Profit (TP) | Automatically secure profits | Yes | Low |
| Trailing Stop (MT Standard) | Adjust stop level following price | Mostly Client-side* | Medium ~ High |
* Refers to standard MT4/MT5 behavior. May vary by broker or environment. Please always test before live trading.
Diagram ②: What Protects You During VPS/EA Downtime
Scenario A: When Market Close is Needed
- VPS/EA offline → Cannot send close command
- Position may be left unattended during volatility
- Risk depends on recovery time
- Trailing Stop (client-side) also stops
Scenario B: Server-side SL/TP
- Server monitors SL/TP (executes even if VPS/EA is stopped)
- Auto-closes when triggered → Losses are capped
- Use expiration for unfilled pending orders
- Use Trailing Stop for optimization, not protection
Recommendation: Always set SL/TP when opening a position. Use server-registered pending orders (Stop/Limit) for new entries whenever possible.
Basic Terminology (By Order Type)
Market Order
“Open now” instruction. Not registered on server (completes upon order communication).
Market Close
“Close now” instruction for held position. Not registered on server. Cannot be placed when offline.
Stop Order (Buy Stop / Sell Stop)
Reservation to open a new position when specified price is reached. Registration on server: Yes. Price monitoring is done by server.
Limit Order (Buy Limit / Sell Limit)
Reservation to open a new position at a specified pullback price. Registration on server: Yes.
Stop Loss (SL)
Automatic close reservation to limit losses. Registration on server: Yes. Slippage possible during gaps.
Take Profit (TP)
Automatic close reservation to secure profits. Registration on server: Yes.
Trailing Stop (Reference)
MT4/MT5 standard is client-side logic. Requires terminal to be online. Base protection on fixed SL/TP.
Risks Depending on Server Registration
Latency Risk
- Market orders rely on real-time communication from terminal to server; increased latency can lead to more unfavorable fills.
- Pending orders and SL/TP are monitored by the server, so the impact of terminal latency at the trigger moment is small (slippage is a separate issue).
Related Article: Choosing VPS Location to Reduce Latency | Basics of Equinix and NY4/LD4/TY3, Impact on Stop-based EAs
VPS and EA Downtime Risk
- If reliant on market close, “close instructions” cannot be sent during downtime.
- Server-registered pending orders and SL/TP continue to function (basic safety net).
- Pending orders cannot be canceled during EA downtime → Set an expiration time to reduce orphan risk.
Related Article: VPS Setup Basics for Stable EA Trading: Keep it Running, Avoid Overloading
Market Volatility and Gap Risk
- No method guarantees execution exactly at the specified price. Slippage can occur during gaps or low liquidity.
- “Whether SL/TP triggers” and “at what price it fills” are separate. They will trigger, but the fill price depends on the market.
Behavior in Common Scenarios
- EA Crashed / VPS Rebooted: Market close not possible. SL/TP and pending orders are continuously monitored by server.
- Increased Latency: Market-order-centric strategies are prone to more unfavorable fills. Server-trigger-centric strategies have limited impact.
- Volatility Spike: Slippage can occur, but having SL/TP clearly defines the maximum loss compared to no-SL trading.
Best Practices
- Set TP/SL simultaneously with new orders.
- Set expiration for pending orders.
- Use Trailing Stop for optimization. Rely on fixed SL/TP for protection.
- Design allowed slippage and minimum distance conservatively.
- Pre-define event and weekend rules. Regarding spread, positions, and cleaning up pending orders.
- Always define maximum loss per trade.
- Prepare monitoring and anomaly detection. Detect VPS operation and uncanceled order remnants. Related Article: EA VPS Monitoring and Automatic Notification Settings
Our EA Policy (Low-Risk Design)
Our site’s EAs are fundamentally based on using Stop Orders with TP/SL, leveraging the benefits of server monitoring to reduce risks from “latency degradation” and “VPS/EA downtime”. We avoid reliance on instant market orders like in scalping and prioritize operation that is “protected at a minimum level even if it stops”.
Summary
- Market orders are communication-dependent. Pending orders and SL/TP are server-registered and operate autonomously.
- Slippage cannot be eliminated, but the presence or absence of SL/TP significantly changes the loss cap.
- Always test behavior in your broker’s environment before going live.
FAQ
- Q. Do SL/TP work even if the EA or VPS is stopped?
- A. Yes. They are typically registered on the broker’s server, which monitors for price reach and executes them (slippage may occur).
- Q. Are Stop Orders and Stop Loss the same thing?
- A. No. A Stop Order is a “reservation to open a new position”, while Stop Loss is a “reservation to close an existing position”.
- Q. Do pending orders not slip?
- A. No. Slippage from the specified price can occur during gaps or low liquidity. Triggering and fill price are separate.
- Q. Does the Trailing Stop run on the server?
- A. The standard MT4/MT5 Trailing Stop is client-side logic. It requires the terminal to be online, so base your protection on fixed SL/TP.
- Q. What if I want to cancel a pending order during EA downtime?
- A. Setting an expiration (Expiration) in advance reduces orphan risk. Inventory check upon recovery is also recommended.
- Q. Which method is suitable for scalping?
- A. Market orders are heavily affected by latency. Breakout strategies suit Stop orders, pullback strategies suit Limit orders, etc. Server-trigger-centric approaches are generally more stable.
