Question for ES Traders - Stop LIMIT on Stop Losses?

Discussion in 'Index Futures' started by brownsfan019, Nov 21, 2007.

  1. Question for the seasoned ES traders - how well or not so well do you think a Stop Limit order as a Stop Loss would hold up on the ES?

    Here's the reason for the question - those frustrating trades where price ticks my stop loss price sometimes for the blink of an eye. A stop market order obviously triggers. I am trying to minimize this, if possible.

    The idea being that a stop limit order would put you at the back of the queue so a momentary touch *should* not tick you out. Of course there is a big catch - if price blasts through, you may not get filled. I understand that but I think the ES is liquid enough for this to be a non-issue. Maybe I am wrong.

    I'm going to start testing this out:
    > Initial Stop Loss sent as a Stop Limit Order.
    > An emergency 'oh shit' stop as a regular Stop Market order below the first stop.

    I trade through Open ECry and I think something like this could be created in their strategy builder.

    It looks like Ninja has a nice feature as well that would accommodate this:


    I don't believe OEC has anything like this currently. That would be perfect actually.

    In the meantime, are there any serious flaw(s) that I am missing here besides the fact that price could go right through my stop limit order and possibly not fill? I wouldn't dare try this on the YM or ER2, but I think the ES and possibly NQ could handle it.

  2. bolter


    A similar feature is also available in X-Trader and Zeroline trader I believe. Typically your stop is triggered once a certain volume trades or appears on the bid/offer. In addition to the risk you mentioned obviously the stop is held on your PC, not at the exchange or your broker - which is another risk.
    All the best,
  3. Thanks bolter, will check that as well.
  4. Try the volume based stop market order. Stop limits are risky in the ES.
  5. Tums


    instead of worrying about your stop, maybe you should first spend your effort in re-evaluating your entry methodology?

    by no mean I am saying your effort is not needed, but rather, the entry/stop relationship must be in place for the stop to be effective.

  6. Nope, don't need to do that and don't want to go there with this topic.

    Thanks for the advice, but this thread is not about stop placement.

    I am trying to limit the trades where the stop is touched for seconds and then proceeds in your direction. This is not a regular occurrence, but enough that I am looking at ways to minimize this, if possible.