[johnw]

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]

Originally Posted by johnw »

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]

Originally Posted by johnw »

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.

Originally Posted by tommaso »

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]

Originally Posted by brownsfan019 »

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]

Originally Posted by johnw »

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]

Originally Posted by brownsfan019 »

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]

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]

Originally Posted by tommaso »

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'.