Filled & stopped out in 2min

Discussion in 'Order Execution' started by Sakkers, May 5, 2006.

  1. Sakkers


    Placed my first US stock trade today using IB.

    Buy stop JSDA qty 670 @ 9.56 stop @ 8.65
    Got filled at avg price 9.75 and stopped out at 8.51 all within the opening few minutes

    Nice slippage ??

    I've been trading Aussie stocks for several years successfully, however I very rarely get slippage greater than several ticks.

    My trading style is basically a breakout trader using price & volume patterns as the trigger. Stops are set 2atr or greater from close. Use end of day data only, place orders prior to market opening. Check positions end of day to adjust stops, heat, % risk etc

    I notice a lot more volatility in US stocks and want to know what order types the experienced traders would recommend to minimise slippage like above?
  2. ddunbar

    ddunbar Guest

    Use a Stop limit.

    The Stop is the trigger price, the limit is the most you are will to exit at (read:lose).

    I use stop limits for entry in FOREX so I don't get "strange" fills. I used to use them for exits, but since I trade only the most liquid currency pairs, a ordinary stop get me out @ or 1 to 2.5 pips worse. I'd use stop limits to exit but sometimes Forex is too fast for them and then I'd have to set the differnce between the stop trigger price and limit price of 5 pips.