Trailing Stop in IB's TWS

Discussion in 'Trading Software' started by Spark, Jun 7, 2002.

  1. Spark


    I read somewhere that there is a way to program trailing stop in IB's TWS. I don't know how. Can anyone suggest the way to set trailing stop or provide the link that describe about it. Thanks.

    If IB has trailing stop feature, that would be a 'fragrance in the gold'....

  2. You need to be a programmer and use TWS's software API's. All the stuff is available on IB's web site, but you need to be able to program. Also, there are some limitations involved with using the API's versus TWS.
  3. vinigar


    I think its about time IB got off the stick and offered trailing stops to its can't be that hard for them...what is the hold up anyways? I love IB, but this is one area that they sure are hurting in.:confused:
  4. Spark


    when will IB will listen to the popular demand for inclusion of trailing stop in the TWS? I guess it is not a rocket science to include this feature in the existing browser. I guess more customers may be attracted to IB if they add this feature.

    I am not a good programmer to do it myself.
    Let's make humble request to IB.
  5. vinigar


    The issue of trailing stops with IB has been a sore one for a long time. Many people have written them and complained.
    I have written them about the trailing stops and the piss poor Quicken download...the only thing I have gotten back is silence. The only one who has tried to help is Def. IB is a great broker, and I knew when I signed on the dotted line how their system was. I have never had any problems. None the less, with constant threats from the market exchanges data feed going down... to just plain ole power would think that the owner or head guy would at least give this issue higher priority. It would be nice to know that you could place a trailing stop...and if a power outage hit would have some piece of mind....the other big thing is, like you... I am not a computer programer. Maybe some of the guys out there who are computer gurus could help us....seeing how IB is not going to. Anybody got a program out there that would be willing to let us have it ...thank you very much!:)
  6. stevet


    IB are not interested in trailing stops for business reasons - and their reasons make sense - though its hard to know if the practical issues would be as serious as the theortetical ones -but, if i owned a brokerage - i would not allow trailing stops

    a stop is only the "stop" the trader envisioned, if it gets activated at or near the desired level - otherwise, once activated, it is a time bomb sitting there waiting to be filled at an unknown level, with each succesive and different fill - forcing the market lower and lower - and it is a way to potentially bankrupt individuals and brokers - if everyone had a stop one point below the last market high - and the markets started to drop - where would the resulting market order be activated!
  7. "everyone" could use this strategy now...manually. what's the diff? one is automated the other is manual. i must be missing the point.
  8. A stop is merely a trigger for an order which becomes a market order if the security trades at or below the stop price, which is the trigger price. There is no question that a stop order can fill a long way from the stop or trigger price, especially in a fast or thin market. But, if you are using a stop, which a lot of successful traders do, wouldn't you rather have a trigger price trailing up with the stock rather than having to constantly monitor the stop (trigger) price and manually have to change your stop? As long as your order executes in the normal (reasonable) range of time and price of the current market, the broker dealer has no liability as to the price of execution of your stop order, which executes as a market order once the trigger price is hit or exceeded. I believe it to be only a question of mechanics not liability. Stevet, you say "If I owned a brokerage firm, I would not allow trailing stops." Maybe you know something I don't. Would you explain why not.

  9. stevet


    the point is - that it is not being done by everyone - since markets move erractically - it is hard to keep updating a trailing stop manually - and this potential problem is new to markets now since it is only executable with trading platforms

    and this is only a theoretical problem - but that does not diminish the dangers for a broker - in that its not the potential market meltdown thats the problem - but all the accounts that might get closed due to whiplashing causing hits from stops being activated way below the envisioned level - with either no equity left or minus equity

    trailing stops are just another way for losing traders to lose money on winning trades - stops should be postioned with regard to the market

    p.s. health warning! if you do not get these points - do not use trailing stops
  10. stevet

    very subtle. nice point.
    #10     Jun 9, 2002