Hello. I was wondering if anyone has any tips for managing stops in NYBOT pits. Yesterday there was some unusual activity about 5min before the close. Looks to me like a classic dump at the end of the session to trigger stops and buy back after the liquidation. I took a 1.5 cent slip on some of my coffee contracts which is painful but not fatal. Lesson learned... Anyway, what do you guys recommend when trading these contracts. I would love to just have my stops on ICE electronically and forgo the pit altogether but I guess that is not available yet. From my standpoint now it seems that stops in a fast moving market are MORE risky due to manipulation like this. I would appreciate others take on this type of situation. Thanks.
You dont know any brokers down there that can do your executions (someone you can call, while in the pit/floor)...so you can talk to them in real time while he's trying to work your orders? I dont care what some people say about the pits, but if your working with a good broker; he'll get your business done at the prices you want with minimum slippage.
I don't personally know any brokers on the floor. I do almost all of my trades electronically and the softs were the only contracts that I still traded in the pit. Also, the NYBOT gives floor brokers a 5 minute window once your stop is triggered to fill the order. That is an eternity in a fast moving market. I'm lucky I only had a 1.5c slip it could have been much worse as the Sept Coffee traded down to 1.1095 from 1.14 in under 5 minutes. I am going to trade through ICE only now and forgo the pit altogether even for stops. IB says they can do stops on ICE through their software so it's worth giving them a try. It can't be any worse than what I experienced on Thursday and it won't take hours to find out what my fill was anymore! Thanks for the input