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

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • ...hallucinates.... Student: “What if we gave the monkey LSD?” Guru: “The monkey already did LSD”
    • Question: To those that had/have cancer, what were the signs that made you think “something is not right here” to make you go see a doctor? Answer: So, 5/25/2018, I woke up, got ready for work, and as I walked to my car, I started gagging. Like something was stuck in my throat and I needed to clear it. And then it went away.   But 10 minutes after that, I was T-boned at 40mph on the driver side door. But what made me see a doctor was while my muscles felt better and bruises were going away, the gagging still continued, I started having fevers, my neck felt swollen, I was having such a hard time breathing, and I'd have random sharp pains in my chest, but not from where the seat belt saved me.   2 weeks after the accident, I finally see an urgent care doctor, who looks me over, tells me I'm fine, but luckily requests a neck X-ray. And I ask for a chest X-ray, which he rolls his eyes but let me have (most of my pain was in the neck, so I understand).   The very next day, he calls and says “So, that chest X-ray shows there's a 4 inch mass on your heart and lungs, and your lungs have been filling up with fluid, as well as in your pericardial (heart) wall. We need you to come in tomorrow.”   Turns out the big mass, due to the accident, caused my heart and lungs to tear and fill with fluid, the swollen neck and gagging was caused by 2 metastasized tumors, and the fevers and weight loss were symptoms. Stage 4b Hodgkin's Lymphoma.   But thankfully, we went very aggressive with chemo (and had a lot of bad side effects that don't normally happen to patients), and now I'm about 16 months cancer-free. Yay lucky X-rays! Rachel Jurina, Quora Source: https://www.quora.com/To-those-that-had-have-cancer-what-were-the-signs-that-made-you-think-something-is-not-right-here-to-make-you-go-see-a-doctor   Profits from free accurate cryptos signals: https://www.predictmag.com/  
    • As a man, the reality of life is the harshest part. I don’t mind looking older or becoming weaker over time; it’s nature.   Have you ever heard that the only people who will be loved unconditionally are women and children? Men will only be loved as long as they can provide until they are no longer needed. It doesn’t matter if you already did your best to get your kids to the best school or get the best things for them, if you stop before they’re done with it, there will be no thank you. The only thing they will remember is that they have to quit school at 15, ignoring all the previous 15 years of life you provided for them. The only people who will accept you, no matter what, are your parents. But in this situation, you might be that ungrateful child.   EDIT: Wow, I didn’t think this would get so much attention.   For those who disagree, I can only say that everyone has their problem. If you don’t get the chance to face such a thing, be grateful. Remember, sometimes what you throw in the garbage is something that someone wishes ever to have.” – ElZee, Quora   Profits from free accurate cryptos signals: https://www.predictmag.com/    
    • The good thing i had noticed so far is that the traderpot value is also on the rise..
    • yup its a gradual rollout the right way in my opinion, its really good and its exciting for the sto in 2027
×
×
  • Create New...

Important Information

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