FAILURE of Stop Orders - using IB Booktrader on 9/29/08

Discussion in 'Trading Software' started by aeliodon, Sep 29, 2008.

  1. Trading YM using booktrader was absolutely nuts today - there were many many times when I set stop market orders and price traded right thru without execution.

    Anyone else have this problem?
  2. JackR


    I'd pull up an IB chart and look at the Time and Sales. Then look at your Audit Trail and see what you find. Fortunately or unfortunately I was at the dentist during the meltdown and did not see the move(s). In looking at the charts I can see there were some large, very rapid, swings.

    There are no true stop orders allowed on the Globex so IB simulates them by monitoring the market and entering a market order when your stop is hit. However, Globex has some special market order rules designed to stop a runaway market. See here:

    If nothing makes sense call IB.

  3. I learned 2 very important lessons today:

    1 Never assume a stop market order will execute especially when you need it to execute the most.

    2 Always trade with the assumption that the market can gap 3% against you before you realize wtf happened.