TF Stop with IB

Discussion in 'Order Execution' started by Gonz, May 17, 2013.

  1. Gonz


    Appreciate all the feedback & advices. Thanks!
    #11     May 18, 2013
  2. If your market stop is hit during a major economic event

    ie FOMC, NFP, etc

    ....chances of slippage are inevitable if the move happened to be very violent and your stop happened to be around the beginning of the move, there's no surviving that without slippage, no matter the broker.
    #12     May 18, 2013
  3. lwlee


    It seems that if a market event occurs during the market hours, a stop-limit will get it at that price. But if say the disaster hits when the exchange is offline like Sunday, I would think your stop-limit will get bypassed. Never had that happened to me.

    #13     May 19, 2013
  4. A stop limit (as an exit) during a high volatility event would be an irresponsible to do, as an entry that's a whole different story.
    #14     May 19, 2013
  5. lwlee


    Nah, dude. When you are actively watching the markets and can hit the "close position" button at any moment, a stop-limit is fine. In terms of execution, it's probably faster since being on the exchange, you are first in queue.

    Away from the market, using a a regular stop loss is better.

    #15     May 19, 2013
  6. We are talking about different things, I am talking specifically about major volatility events.
    #16     May 19, 2013
  7. lwlee


    I know what you are talking about. If you actually ever been in a real event during market hours, most of the time, all the stops will get blown through but they will get hit. Talking about the indices like the TF.

    #17     May 19, 2013
  8. Sergio77


    6 ticks is a lot. You should look at time and sales.
    #18     May 26, 2013
  9. southall


    I been trading ER2 and TF since 2004.

    6 ticks will happen occasionally.

    I think i may have had 20 or 30 ticks in the past as well (during regular trading hours! and not around any major news event either) when trading the ER2 which was more liquid that TF. And i was using exchange stops on Globex at the time.

    If there is some large fund wanting to get in and out of a TF position quickly. Say they want to buy or sell 1000 really TF fast. Then you will get slippage, nothing you can do about it.

    But these events are very rare and you should look at your average slippage on each instrument you trade, for TF average slippage is quite small. If you get 6 ticks slippage once every 50 trades, then its not something to worry about.
    #19     May 26, 2013