Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Predictor

Trading in Small Vs Large

Recommended Posts

One concept Dr. Steenbarger mentioned a few times was that if you can eek out even a small bit more from your trades then it can add up to a lot.

 

If you get just 1 point better fill over 100 trades then that is worth $5,000.

 

Now, I have always considered myself who trades "in the large". When I try to eek out that 1 extra point I've found it often cost me a lot more. But on the other hand, there are times I go to market and could have "easily" got a better entry. If you look at a method that only makes on average 3 points then 1 extra point is 33% gain.

 

How do you manage to get best fill while not missing the trade? One idea of mine would be to use an algorithm for this, I just tell it I want to go long/short and it uses a programmed logic to get me the best fill.

 

Note I'm not talking about "filling a big order" but getting me the best pricing while not missing the move.

Share this post


Link to post
Share on other sites

How do you manage to get best fill while not missing the trade?

 

I am not sure what you mean by big order. I find the best fill without missing the trade is a fill. i.e. buy at the ask and sell at the bid. Greed is what causes you to miss a trade.

 

I have a problem with pricing, I use Bloomberg for live prices and it differs from my brokers. Both are delivered through the internet and most times my brokers prices can lag up to 4s from Bloomberg. This reinforces; buy at the ask and sell at the bid, since the price you see from your broker may not be the actual market price.

Edited by xioxxio

Share this post


Link to post
Share on other sites

xioxxio - what are you trading to get radically different broker prices and bberg prices?

recent days we have seen this in the office with equities and a few futures due to the massive increase in volume and vol, but normally its all pretty good - but 4s delays is not good...I ask as we also are in Sydney

Share this post


Link to post
Share on other sites

On the ES, it was pre-market and in the first 30 minutes into the trading session. Also when the market goes nuts. I watched the ES go up 3 ticks and back down and IB did not even flinch. I was horrified.

 

I am in the process of looking for another data provider for futures to execute through. I will keep IB for stocks only.

Share this post


Link to post
Share on other sites

we have had similar issues in our office but on different systems.

IRESS has been slow - you can see the prices updating ok, but the last sales and the charts have been behind....mind you the volume and speed make this understandable. When you have a whole equity market up or down 1% in less than 3-4 mins at one stage it is to be expected.

Interestingly enough IB was accurate for one of the guys in the office while Iress was slow.

None of us were trading the ES - only Australia the last few days.

trading ES or any other overseas market, you had better have a massive pipe for the info n days like the recent ones, otherwise I dont think you can blame the system.....this is why many banks, hft locate at the exchanges.

A friend was up trading the ES and said he just expects this lag and compensates by legging in his positions expecting bad fills.....and then puts in limit orders when taking things off as profit targets but market orders for stops.....he says it is the only way he can be confident of fills....the worst thing is waiting to see if you are done or not as the lag does not give you your position. (I stopped trading the other day as an instance of this caused me enough frustration - thankfully as it would have cost me when the mkt here was down 5.5% then rallied to be up 1% and I wanted to short it)

Share this post


Link to post
Share on other sites

I am not sure about IRESS, I am surprised it is slow, are you running the web version?

 

We have servers in the colo of the exchanges we trade. If not we use Bloomberg or Reuters data.

 

It is amusing watching the differences in IB and BB on the ES

Share this post


Link to post
Share on other sites
if you can eek out even a small bit more from your trades then it can add up to a lot.

. . . . .

When I try to eek out that 1 extra point I've found it often cost me a lot more. But on the other hand, there are times I go to market and could have "easily" got a better entry.

 

It's very difficult to time the perfect entry or exit. You need a good "signal" to tell you when to fire off the trade. If anyone watches price on the trading ladder, you'll see price surge hard when it decides to move to the next level. And often times, when price crosses a major support or resistance line for a peak or bottom, the price literally only crosses the line for a split second. You have no time to react in those situations.

 

It's difficult to know if price is going to surge hard over a support or resistance line and keep going, or just cross the line in a split second, and then reverse.

 

Automated entries and exits would probably help with speed of the execution, as long as it's a good signal. If it's a set up that you use all the time, then I'd think an automated order would be great.

 

Then there is the option of scaling in.

Share this post


Link to post
Share on other sites
I am not sure about IRESS, I am surprised it is slow, are you running the web version?

 

We have servers in the colo of the exchanges we trade. If not we use Bloomberg or Reuters data.

 

It is amusing watching the differences in IB and BB on the ES

 

yes i have the web version, but the guys in the office with the full blown version were just as slow.....just too much volume and volatility I guess...it sporadically caught up but was never quite up to scratch, and when the match came - forget about it.

(personally Iress for ASX was the bees kness - now its no where near as good as it used to be, but its still sufficient, and BB is better - but i dont need the bells and whistles for the extra monthly costs)

I am pretty sure the IB servers are back in the US (maybe not), but as a retail product they do pretty well.

Share this post


Link to post
Share on other sites
One concept Dr. Steenbarger mentioned a few times was that if you can eek out even a small bit more from your trades then it can add up to a lot.

 

If you get just 1 point better fill over 100 trades then that is worth $5,000.

 

Now, I have always considered myself who trades "in the large". When I try to eek out that 1 extra point I've found it often cost me a lot more. But on the other hand, there are times I go to market and could have "easily" got a better entry. If you look at a method that only makes on average 3 points then 1 extra point is 33% gain.

 

How do you manage to get best fill while not missing the trade? One idea of mine would be to use an algorithm for this, I just tell it I want to go long/short and it uses a programmed logic to get me the best fill.

 

Note I'm not talking about "filling a big order" but getting me the best pricing while not missing the move.

 

Hi, thanks for the article. I have written on a similar topic here:

 

http://www.traderslaboratory.com/forums/forex/18608-trading-small-account-sizes.html#post193800

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Topics

  • Posts

    • Date : 25th April 2018.

      MACRO EVENTS & NEWS OF 25th April 2018.



      FX News Today

      European Outlook: 10-year Bund yields are down -0.4 bp at 0.623% in early trade, the 2-year is down -0.5 bp at -0.5685. 10-year Treasury yields pierced the 3% mark overnight, but have fallen back slightly to currently 2.998%, while yields moved broadly higher in Asia with the 10-year JGB up 1.2 bp at 0.054%. Stock markets headed south in Asia, following a weak close in the U.S. with concerns about the earnings outlook amid warnings on profit outlooks hit sentiment. With a lack of key data releases in Europe today the focus is on the ECB meeting tomorrow, where Draghi will likely see through the recent run of weak confidence data to keep the ECB on course to end net asset purchases by the end of the year, but repeat once again that inflation is not yet on a sustainable path higher, which means the ECB is not ready to commit just yet.

      FX Update: USDJPY lifted back above 109.00 from yesterday’s correction low at 108.54, but has so far left yesterday’s 10-week peak at 109.20 untroubled. Ditto for EURJPY. Stock markets in Asia have been broadly lower following declines on Wall Street, with investors digesting higher yields — the 10-year T-note finally touched the 3.0% level (and first time here since early 2017) — and doubts about earnings growth. The USA500 closed out yesterday with a 1.3% loss, while the Nikkie 225 was showing a 0.3% loss in the late PM Tokyo session. This backdrop has likely curtailed yen selling, according to market narratives. In data, Japan’s February industry activity index came in with 0.4% m/m growth, slightly below the median forecast for 0.5%. USDJPY has been trending higher for a month now, from sub-105.00 levels. The dynamic has been concomitant with rising U.S. yields, with looser fiscal policy having given added underpinning to Fed tightening expectations. This comes with the BoJ continuing to peg JGB 10-year yields near 0.0%. Demand for foreign assets by Japanese life insurers has been a factor propping USDJPY up so far in the new fiscal year, while an abatement in concerns about trade tensions and cooling relations on the Korean peninsular have also been in the mix. Overall, we advise following the trend in USDJPY for now. Support comes in at 108.40-42.

      Charts of the Day



      Main Macro Events Today
        Credit Suisse Economic Expectations Crude Oil Inventories – Expectations – -2.043M Barrels from -1.1M last week BOC Gov Poloz & Wilkins speech – Poloz and Wilkins appear before the Senate Standing Committee on Banking, Trade and Commerce on Wednesday. Support & Resistance Levels



      Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

      Please note that times displayed based on local time zone and are from time of writing this report.

      Click HERE to access the full HotForex Economic calendar.

      Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

      Click HERE to READ more Market news. 


      Stuart Cowell
      Senior Market Analyst
      HotForex


      Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • $DXCM (DXCM) DexCom stock top of range breakout watch above 75.61,



      analysis http://chart.st/DXCM
       
    • Date : 24th April 2018.

      MACRO EVENTS & NEWS OF 24th April 2018.



      FX News Today

      European Outlook: Asian markets moved mostly higher overnight, following on from a positive session on Wall Street and amid ongoing USD strength with a weaker Yen underpinning a 0.75% rise in the Nikkei. The Hang Seng is up 0.94%, the CSI 300 rallied 1.75% amid speculation that the government is considering easing some policies put in to limit the credit boom. The absence of any negative news on the trade front seems to have given stock markets some breathing space and U.S. futures are also up in tandem with U.K. futures. Oil prices are also up and the front end Nymex future is trading at USD 69.14 per barrel. For now though bonds are getting a boost and stock markets are also higher, with most European futures posting gains in tandem with U.S. futures and after a positive session in Asia. Today’s calendar focuses on confidence data out of France, Germany and the U.K.. The U.K. also has public finance data and Germany auctions 2-year Schatz notes.

      FX Update: The dollar posted fresh highs against the euro and yen, and many other currencies after a bout of demand in Asia, which extending a broad rally the greenback has been seeing against for over a week now. The narrow trade-weighted USD index (DXY) posted its highest level since the first week of January, at 91.07. EURUSD logged a 10-week low at 1.2184, though euro demand has subsequently fuelled a rebound to the 1.2220 area. USDJPY lifted for a sixth consecutive session, making a 10-week high at 108.87. EURJPY is also firmer, though has so far remained below the two-month high it saw last week. The gains in USDJPY have been concomitant with the U.S. T-note yield nearing the 3.0% level, which has been generating headlines, which comes with the BoJ continuing to peg JGB 10-year yields near 0.0%. The Nikkei 225 closed 0.86% for the better, more than reversing the moderate loss seen yesterday. North Korea’s Kim said that he would be willing to accept IAEA inspections of nuclear facilities.

      Charts of the Day



      Main Macro Events Today
        German IFO – The German Ifo business confidence indicator, due Tuesday, comes in a new format this month, which includes the services sector now. For the new indicator a dip is expected to 102.8 from 103.2, and a decline in the expectations reading to 99.5 from 100.1 in the previous month. However, after the better than expected PMI readings there is a bias to the upside to the numbers. In any case, we don’t expect the April round of survey indicators to really change the outlook for the ECB, which is seen on hold this week, with officials seeing scope to leave the final decision on the future of the QE program open until July, when the risks to the global outlook may have become a bit clearer and the decision is becoming urgent. UK Public Borrowing – Expectations – at 1.6B pounds from -0.272B pounds last month. US Consumer confidence – likely declined to 126.0 in April, from March’s 127.7. US New home sales – expected to rise to 0.630 mln in April from 0.618 mln in February. Support & Resistance Levels



      Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

      Please note that times displayed based on local time zone and are from time of writing this report.

      Click HERE to access the full HotForex Economic calendar.

      Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

      Click HERE to READ more Market news. 


      Andria Pichidi
      Market Analyst
      HotForex


      Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Addendum:
      http://www.thedailybell.com/news-analysis/if-you-limit-any-free-speech-this-is-what-you-get/  
      ...
      Anar  Chicagoans, etc, etc, -  wake up !
      This -> https://www.mintpressnews.com/cheran-mexicos-indigenous-community-that-rebelled-against-narcos-thieves-and-politicians-and-won/240979/
      instead of this -> http://massprivatei.blogspot.com/2018/04/smart-city-projects-are-really-police.html
       
    • $WD (WD) Walker & Dunlop stock nice bull flag breakout watch,



      analysis http://chart.st/WD
       
×

Important Information

By using this site, you agree to our Terms of Use.