Are there market implication differences between Buy-stops and Buy-limits?

[Powerbacon]

I'm asking in terms of the market's response after placing either a buy/sell stop vs. a buy/sell limit.

I'm beginning to think that algos do not like market orders. I can actually see a difference in price action although sometimes subtle and sometimes extremely apparent when placing the two types of orders.

It happens in all markets I've traded thus far. I think it's pretty remarkable and a little shocking depending on the situation in the market.

Has anyone else noticed this??

 

[Goldlover]

I'm asking in terms of the market's response after placing either a buy/sell stop vs. a buy/sell limit.

I'm beginning to think that algos do not like market orders. I can actually see a difference in price action although sometimes subtle and sometimes extremely apparent when placing the two types of orders.

It happens in all markets I've traded thus far. I think it's pretty remarkable and a little shocking depending on the situation in the market.

Has anyone else noticed this??

Interesting observation! Haven't thought of this before.

 

[Powerbacon]

Interesting observation! Haven't thought of this before.

The other side of the coin is before the execution. The placement of limit orders reveal the intentions of the algos.

If you place a buy limit the price will begin to back off and induce you move it up hap-haphazardly in order to move your stop up, exposing it higher up in the ATR and more reachable. Another aspect of this is the algo refuses to fill your limit order all together if you have the trade correct the second the limit order is placed. You'll often see the price rip away in the intended trade direction.

Traders that pay close attention to price action in relation to their orders will recognize this.

If you place a sell limit sometimes price will start to chase as you move it higher and higher. Sometimes the price reveals itself to be a reversal and the algo is chasing your liquidity.

Contrary to the classic idea, it's actually better to place the market order and expect the algo to push price into the negative on each trade for the flush out.

 

[murray t turtle]

I'm asking in terms of the market's response after placing either a buy/sell stop vs. a buy/sell limit.

I'm beginning to think that algos do not like market orders. I can actually see a difference in price action although sometimes subtle and sometimes extremely apparent when placing the two types of orders.

It happens in all markets I've traded thus far. I think it's pretty remarkable and a little shocking depending on the situation in the market.

Has anyone else noticed this??

%%
I use market exits about 80%of the time ;
limits about 95% entry, but thats liquid stuff like TQQQ + SPY QQQ, occasional SH=super liquid.
SCHW gives me good fills on both orders .................................................
Single stock , especially gap down$ most any order can moVe it...................;
sounds like you are doing semi liquid stuff, not super liquid

 

[Wide Tailz]

Stops and limits are just like magnets, and so are the algos.

Stops attract them, limits repel them, and market orders obliterate them!

Once your order is filled your magnet is also deactivated. All those fake quotes from algos over the years may be for the purpose of exploiting this effect. Not unlike fake craigslist ads!

 

[murray t turtle]

Stops and limits are just like magnets, and so are the algos.

Stops attract them, limits repel them, and market orders obliterate them!

Once your order is filled your magnet is also deactivated. All those fake quotes from algos over the years may be for the purpose of exploiting this effect. Not unlike fake craigslist ads!

%%
BIG difference ;
between closed contracts [done] + contract pending, REALTY.
I seldom pay attention to contracts pending but I'm not a REALTOR.
Prefer mostly market exits+ limit entries, but some of those never get filled -that's life

 

[Sprout]

I'm asking in terms of the market's response after placing either a buy/sell stop vs. a buy/sell limit.

I'm beginning to think that algos do not like market orders. I can actually see a difference in price action although sometimes subtle and sometimes extremely apparent when placing the two types of orders.

It happens in all markets I've traded thus far. I think it's pretty remarkable and a little shocking depending on the situation in the market.

Has anyone else noticed this??

Depends on size. Not including latency arb, market orders jumps the queue from their maker-taker pricing position.

Anyone trading size are routing through dark pools.

 

[Goldlover]

The other side of the coin is before the execution. The placement of limit orders reveal the intentions of the algos.

If you place a buy limit the price will begin to back off and induce you move it up hap-haphazardly in order to move your stop up, exposing it higher up in the ATR and more reachable. Another aspect of this is the algo refuses to fill your limit order all together if you have the trade correct the second the limit order is placed. You'll often see the price rip away in the intended trade direction.

Traders that pay close attention to price action in relation to their orders will recognize this.

If you place a sell limit sometimes price will start to chase as you move it higher and higher. Sometimes the price reveals itself to be a reversal and the algo is chasing your liquidity.

Contrary to the classic idea, it's actually better to place the market order and expect the algo to push price into the negative on each trade for the flush out.

Oh thanks! appreciate the info