Does IB hunt stops?

Discussion in 'Interactive Brokers' started by lindq, Jan 5, 2011.

  1. lindq


    It could be just me...but I've had a great number of instances the past few months when setting market stop limits on equities at IB, to have them quickly hit then bounce back. Both short and long trades.

    Recently, I've moved to setting stops via my software platform with auto-entry, and haven't experienced the same problem.

    Maybe it is my imagination. But maybe not.

    IB tells me of course that market stops are not sent to the market, which is why I use them. And I don't know the details of IB's internal setup, but I'm wondering if IB has an internal trading operation that could be reading stops set in client accounts.

    Anyone else have similar experiences, or further knowledge?
  2. No.
  3. Trust your intuition.
  4. bigpapi


    everyone has this problem every once in a while, but IB doesn't have the capacity to move a market once your stop is hit, my conclusion is that even though we think we're unique in where we place our stops we're not and big money can accurately predict our breaking point
  5. IB has an internal trading division that is Timber Hill. They internalize your orders and yes they can see every posted order you send.
  6. lindq


    If that is indeed the case, then it would be a simple matter of them setting alerts when price movement and volume was such that a stop could easily be hit.

    I've had a number of instances when a stop was hit precisely, then witnessed an immediate rebound to previous levels.

    If there is still anyone on this board from IB, I would like to hear a response as to whether or not their trading operation has access to client orders.
  7. even if they did they won't admit in public.

    the markets are wild west markets an unregulated. HFT is worse than pulling stops afterhours..

    these market makers can do whatever they want if you have stop and they can make mone doing it they will..there is no rule against them not doing's wild west anything goes unregulated market.

    if you don't like it get out of th don't have to trade or invest in this market. there is no regulation against this market activity of running stops etc. or illegal to frontrun client orders and even if they did it's hard to prove. the computers have acess to your stop orders how else will they put a market stop if they didn't know it.

    these are highly intelligent algorithms that were not available before to the market makers or exhanges thanks to electronic trading..electroinc trading is like playing blackjack with dealer knowing everyone hands and positions.. these market makers or professionals treat the market or game of trading like one big casino....

  8. ugz


    96% of the time my stop gets hit so yes they do IMHO
  9. def

    def Sponsor

    STOPS ARE NOT HUNTED and the trading operation does not see client orders.

    It's a joke that these threads keep popping up given the performance reports that IB posts to SEC and despite numerous comments made from the firm. Compare IB's stats with your other brokers and then let's talk.

    Let me go over a few items from the last report.
    -> less then 3% of NYSE non-directed stock orders were market orders
    -> out of those 3% of non-directed market orders, they were widely split up amongst the various exchanges.

    if the trading operation was internalizing all this flow, why would the distribution amongst exchanges be so evenly spread out?

    There is so much noise in the market today, perhaps those of you who think your stops are being hunted should take some time to look at the tape and the randomness of trades. Perhaps even place a mental stop and see if we can read your minds as well. I bet you'd find that a significant amount of time you'd think we have that ability as well.
  10. lindq


    I have considered that, but I've stayed a step ahead of you and wear a tin foil hat.

    Thank you for responding, but it is a question that needs to be asked.
    #10     Jan 6, 2011