QQQ slippage with IB's smart routing

Discussion in 'Order Execution' started by o_2_b_sean, Jul 31, 2002.

  1. anyone here trading the QQQs with IB's smart routing via API or otherwise? What kind of slippage are you seeing with your market orders? If you trade the SPY I am interested in hearing about that too.
  2. I found the simplest and best thing to do is just use Island....no matter what just bid or offer a penny above or below and use isld.
  3. I use IB's API, so I can't specify exchanges. My only option is smart routing.
  4. I found slippage on short sales to be especially horrible. It seemed like I always got a fill just shy of the inside market every time, with slow fills to boot.

    I switched to ISLD and now I get filled where it should be.
  5. Fohat


    If you want no slippage, route QQQs to Island ECN.
  6. Magna

    Magna Administrator

    I wouldn't go so far as to say no slippage, but I agree ISLD is the best route for trading the QQQ. In a fast market things will slip around a bit, but not much, and you're not going to do better elsewhere.
  7. tech,

    are you talking about IB's smart routing? You don't say which exchange you found so horrible. Maybe I should look for another broker for stocks with an API that supports personalized routing, if such exists.
  8. Smart routing - yes. I think it routed through the NYSE which would explain the nonsense. The Island is the only way to go with the Q's.

    You can set a global ECN/exchange or by each ticker.

    I'm not a scalper so all my standard Naz daytraders are set to 'smart' routing except the QQQ.

    IB's a great broker - today there were some connectivity issues on and off but those aren't too frequent. They've recently started up a decent message board, too, staffed by IB people.

    Def visits here on occasion but it's a hit or miss. Their board addresses a lot of issues from TWS enhancements (and bugs) to evrything else.

    The only problem from what I've read is if you're a daytrader w/less than 25k. Then their rules tend to get strict regarding settlement, etc, especially in a cash account.
  9. I trade 1k lot of SPY and DIA, if smart route to
    NYSE or AMEX, slippage can be from 5 cents to 10 cents.
    Sometime you get price improvement as well.

    Are you trying to scalp or looking for longer time frame (1-5 minutes)
  10. I trade 1-5k lots (depending on strength of trend) using 5-minute bars.
    #10     Jul 31, 2002