market vs. limit orders on emini Indexes...hey guys, don't get hacked I opened up another thread... When trading the emini indexes...do you use market or limit orders...the guys here have opened up a whole new can of trading opportunities to me by suggesting limit orders...honestly, I have only, ever, ever used market orders when trading the ES, NQ,YM, TF, DAX, FTSE... It seems that the benefits of limit orders are more: 1-no slippage 2-can target your entry not at mercy of market order 3-? Market order benefits are: 1-guaranteed automatic fill...BUT, where in regards to current price???? WHAT % OF YOU USE LIMIT ORDERS OVER market orders when traing the eminis? thanks for sharing your expertise...!
Thought we just went through this... http://elitetrader.com/vb/showthread.php?s=&threadid=142188&perpage=6&pagenumber=1
OK. I only use limit orders. I trade large at times and hate slippage. There is no slippage with limit orders.
what do you use for a "back out plan"...meaning...set sell ES limit order at 900...get filled at 900, market starts to head back up...901,902 etc....what is your next move?...trailing or hard stop or mental stop at???
Depends on volatility and instrument. The ES likes to shake more than the YM. My stop and target are entered immediately after I am in the trade. Usually, my target exit is way out there unless I can gauge an average move. Mental stops are worthless IMO, just allows for one more thing to go wrong. Mental stops remind me of buy-and-hold investors... they have no idea when they are getting out. If you're looking at a slide like today from 12:20 to 12:40, I set a target exit for 100 pts just so its out of the way, and then babysit my stop, updating it every 10 ES points. Like late today, I shorted at 907 and exited at 880 when it hit my stop. I only trail a stop if I am sick or have to leave, and want to be sure there is some level of exit strategy. I never trade overnight, since I like to sleep without thinking about money.
I use market and limit depending on the type of trade and the instrament. Some trades I have no signal till the last second and have no time for a limit. However I never had a YM limit order not fill on me? Even a limit fired at market price?
I trade ES. I used to use limit orders only for entry. Recently I missed a lot of good trades due to unfilled limit orders. Now I try to make some adjustment to use market orders more frequently. It is still work in progress. It seems to me both market order and limit order have the merits and drawbacks. Traders have to find their own ways to balance them.
Use Market orders based on level II data. CME implemented "protective" market orders with bust period for outrageous fills. (3 points / 8 minutes) Slipage is zero to 2 ticks but on the otherside have received ticks to our benefit. Really depends more on your trading system.