Damir's Trading Journal

Do you normally attach stops to these over-night orders?

-FastTrader

 

Hi,

I don't usually do anything; this is my first experience with overnight orders. I didn't know I could attach a stop. These are limit orders and as unfilled orders on futures, can I attach a stop?

Thanks.

 

I use IB, and yes, I can attach a stop to a limit order.

-FastTrader

 

Hmm... I'm not sure what it means in this context. Isn't the Stop to close a position, rather than open? These orders are to open new positions, either long or short, and of course, getting both filled is extremely unlikely, and these are limit orders. How would a stop work in the context of opening a position? Thx.

 

this is the part where you tell me "1 contract only".

 

You attach a stop to the limit order. Once the limit order gets filled, the stop activates. If it doesn't get filled, your stop will not be activated.

So, you could do the following:

Short YM @ 9655, with attached auto-stop to cover at 9675
Long YM @ 9520, with attached auto-stop to sell at 9500

-FastTrader

 

thanks for bringing that up, FT.

 

damir: I'll change the orders. edit: I changed the orders to 1 contract.

FastTrader: I am impressed with that. Instead of the auto-stop, can I attach an auto-close (on the profitable side)?

damir: Do you want to use stops? I thought I understood not.

 

i don't use price-stops, but on overnights i also push my limits further out. what i'm looking for is catching the glitchy-temporary move that happens to be in the same direction as i'd want to be holding anyway.

just thought it was nice of FT to post the information.

 

Yes, very nice and very important. Thank you again, FT!