What Stops Do You Use with OCO Orders

[johnw 10]

Hi there,

 

I am interested to know what types of stops people are using to intraday trade ES.

 

For example would a stop limit order (held on your broker's server) be fast enough to

catch the limit on cme or is a stop market order much safer.

If it is to be a stop market order, what sort of slippage if any is incurred

 

thanks

john

[tommaso 10]

Hi there,

 

I am interested to know what types of stops people are using to intraday trade ES.

 

For example would a stop limit order (held on your broker's server) be fast enough to

catch the limit on cme or is a stop market order much safer.

If it is to be a stop market order, what sort of slippage if any is incurred

 

thanks

john

 

 

I do not use stop. In my experience is not possible to be profitable if hard stops are used. More advanced way of hedging are necessary.

 

 

____________________

Tom

my futures autotrading journal

[brownsfan019 17]

Hi there,

 

I am interested to know what types of stops people are using to intraday trade ES.

 

For example would a stop limit order (held on your broker's server) be fast enough to

catch the limit on cme or is a stop market order much safer.

If it is to be a stop market order, what sort of slippage if any is incurred

 

thanks

john

 

The safe stops are market orders by far. Why? B/c then you are guaranteed an execution. Limit orders are dangerous b/c if you get caught into a big movement (news driven) you might be left in your position b/c your stop was not triggered.

 

 

I do not use stop. In my experience is not possible to be profitable if hard stops are used. More advanced way of hedging are necessary.

 

It's very possible and I do it every day. You can see the results in the p/l thread if you don't believe.

[johnw 10]

The safe stops are market orders by far. Why? B/c then you are guaranteed an execution. Limit orders are dangerous b/c if you get caught into a big movement (news driven) you might be left in your position b/c your stop was not triggered.

 

 

Thanks BF

 

What sort of slippage are you getting from "Stop- Market"

What has been your biggest slippage

[brownsfan019 17]

Thanks BF

 

What sort of slippage are you getting from "Stop- Market"

What has been your biggest slippage

 

It depends on each market, but you were asking about the ES in your initial post - there I would say no more than 2 ticks. If it's during normal market conditions, very little slippage. If it's during news, all bets are off. For example, if you trade NFP and have a stop on during that, hang on. Now if you are trading at 11:30am on a Wed with zero news, I would say you'd see very little slippage.

[tommaso 10]

The safe stops are market orders by far. Why? B/c then you are guaranteed an execution. Limit orders are dangerous b/c if you get caught into a big movement (news driven) you might be left in your position b/c your stop was not triggered.

 

 

 

 

It's very possible and I do it every day. You can see the results in the p/l thread if you don't believe.

 

I believe you. But, you sure can make more money in a different way. Take a look at the result in my journal on a futures folio (signature), and you will see what I mean.

 

____________________

Tom

my futures autotrading journal

[BlowFish 10]

Any order that you absolutely want executed should end up a market order when elected.

 

Whether using stop losses, emergency stops, trailing stops or whatever as part of your money management scheme is a good thing is a slightly different debate. If you want to absolutely be sure your orders are filled when elected then you should not use a limit.

[brownsfan019 17]

I believe you. But, you sure can make more money in a different way. Take a look at the result in my journal on a futures folio (signature), and you will see what I mean.

 

 

I'm good, but thanks. Point is that it is very possible to make money using stops. I would actually argue that those not using stops or mental stops are just begging for a 'trade' to turn into an 'investment'.

[zdo 20]

john w,

 

Generally speaking, with mini's go with stop market... dynamically locating your stops is SO much more important than (any virtually inconsequential) occasional slippage . In normal auctions, slippage is negligible with at market stops. In a fast market, you have the options to 1 continue to apply your normal rules, 2 slide the stop order(s) out to disaster land, get up on the stick, and click in and out manually, or 3 practice never letting a stop get hit by going to market (and cancelling the live stop before it's hit)... with practice, one can actually do a lot of clicking in 1 sec ...

 

Remember though that the use of stops, location of stops, type of stops, etc is ultimately always individual system dependent. If you don't qualify every answer you get to these types of questions with this dependency, it can end up sorta like asking a wheat farmer how to grow ginseng and getting a wheat growing answer to a ginseng growing question... hth