TD Ameritrade ThinkorSwim Trailing Stops not working

Discussion in 'Order Execution' started by vanman72001, Feb 16, 2021.

  1. Anyone else having problems with Trailing Stops not working with ThinkorSwim while Day trading?

    I am using a 2% trailing stop based on the MARK at time of entry, and sometimes the trailing stop order gets triggered 60 seconds or so after the entry before the security moves even .1% in either direction.

    The order is set up as an advanced OCO order like this:

    Buy Market order which triggers a bracket order of these two OCO orders --

    2% trailing stop
    3:45 pm Sell Market order.

    So, for instance, the Buy Market order will create a position in the stock for $100, then the trailing stop will activate prematurely sometimes just 60 seconds or so after the market order creates the position, and I will end up exiting the position at $99.89 or some such, no where near the 2% stop loss level of $98. And this is occurring on days even when there is very little volatility. The stock is not running up to $102, and then falling hard and triggering the 2% trailing stop. The stock is literally barely moving and the trailing stop is being triggered for no apparent reason.

    I have had this happen about once out of every 8 or 9 trades I execute using this advanced OCO order. It's creating a big problem for the semi-automated Day trading strategy I'm creating. Any insights?
    Last edited: Feb 16, 2021
  2. zdreg


    Your stops are too close if it happens very often.
  3. iprph90


    Are you sure you have real time quotes on desktop platform? Go to settings and double check.
  4. It's because you are not allowed to day trade on TDameritrade. They are probably doing it on purpose to give you a warning.
  5. Well, I spoke with one of their specialists today and we did a live walk-thru of the TOS platform and the advanced trade orders I am using and he is stumped, too. The Trailing Stop should not have executed pre-maturely but it did. There is a really tight spread on this instrument I am trading, and it usually takes many minutes to hours to move 2% in either direction, and these pre-mature 2% Trailing Stop executions are not based on a real MARK price because they are literally occurring within seconds of the initial entry where the stock has literally moved less than .1% in either direction. The specialist says Trailing Stops on the TOS platform are a known problem and have been for years, and the only thing that might be able to clear it up would be to convert my web-based TD Ameritrade accounts to TOS-based TD Ameritrade accounts, but even then he doesn't know if it will work 100% of the time. So basically, I'm discontinuing the use of trailing stops at TD Ameritrade because there is no way I'm willing to put $100,000 or more on the line with this recurring problem. It may be time to move to another brokerage that actually fixes known problems and bugs.
    It's too bad, because the Trailing Stops on TOS work properly about 88% of the time, and they are great when they work right.

    So basically, at TD Ameritrade it's not safe to enter a One Triggers another bracket order with a 2% Trailing Stop based on the MARK price at the time the initial order fills. This actually is a very simple order and is not that advanced at all. It should go off without a hitch every time. TD Ameritrade needs to fix this bug before someone gets burned very badly. Fortunately I discovered it during live testing of a strategy using tiny position sizes, so i'm not out any serious money.
    Last edited: Feb 16, 2021
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