Actual Stop Orders VS Stop Alerts

Discussion in 'Index Futures' started by VoodooMMI, Apr 20, 2008.

  1. Traditionally, I've preferred to use Stop Alerts when stop levels are reached. Upon receiving an alert, I would manually enter a limit order to get out of my position, changing my limit price if needed until I got out of my position.

    However, the ES seems to trade so liquidly and with an almost constant 0.25 spread that I've started using Actual Stop Orders. So far, there has been no slippage (i.e. my Stop price has been the price that I've been filled at). The NQ seems to be bit different in that I've had 0.25 slippage on about half my Actual Stop Orders in that market between 9:30 and 16:00 eastern time.

    I had a full time day job and can't always be in front of the computer so Actual Stop Orders help a lot. For those of you that are in front of the computer from 9:30 to 16:00 eastern time, do you use Actual Stop Levels or Stop Alerts?

  2. what will happen is that sometimes your ALERT will be too slow

    you will be too slow

    and will have a nice loss

    so don't use alerts, use stops

    as you learn to trade, you will figure out that alert is bullshit

    you either want to get out of at this price OR YOU DON'T

    simple as that, I understand your problem

    you look at price and don't know what to do so you try to SEE if you should enter or exit

    in other words you don't have a plan that says A then B then C then D

    but why am I helping you, I am after your money :cool:
  3. Tums


    Life is about commitments.

    If you cannot commit to anything, you have nothing.
  4. I think it depends on the spread of a particular market. If the spread is small and your position is small relative to that market, just use an Actual Stop. But if the spread of a particular market is big you may want to use an alert and then use limit orders to get out of your position.