Automatic stop loss IB on entry

heavenskrow · Aug 27, 2015

I've been getting more serious about my trading lately and the one thing I'd like to have set in stone in trading futures is an automatic stop loss of 2-3% of my capital from the entry of my order.

How would I go about doing that on IB? I've looked into the preset options but so far I haven't gotten it to work. Right now the only way to manually attach a stop loss is on entry, in which you have to calculate the 2-3% in terms of ticks and then attach it before entry, which takes up way too much time.

loyek590 · Aug 27, 2015

heavenskrow said:
I've been getting more serious about my trading lately and the one thing I'd like to have set in stone in trading futures is an automatic stop loss of 2-3% of my capital from the entry of my order.

How would I go about doing that on IB? I've looked into the preset options but so far I haven't gotten it to work. Right now the only way to manually attach a stop loss is on entry, in which you have to calculate the 2-3% in terms of ticks and then attach it before entry, which takes up way too much time.

you can attach a stop to any order in the presets. You'll need to use a limit order for the primary so the stop has something to key off, a mkt order won't work (but a buy limt ask or buy limit ask plus will). You can set the stop either points or percentage.

click symbol
click configure presets
click all enabled fields
set primary (must be a limit)
then page down past target to Attach Stop and replace "none" with "stop" then enter value you want for your stop either points or percentage

heavenskrow · Aug 28, 2015

loyek590 said:
you can attach a stop to any order in the presets. You'll need to use a limit order for the primary so the stop has something to key off, a mkt order won't work (but a buy limt ask or buy limit ask plus will). You can set the stop either points or percentage.

click symbol
click configure presets
click all enabled fields
set primary (must be a limit)
then page down past target to Attach Stop and replace "none" with "stop" then enter value you want for your stop either points or percentage

That's pretty weird how it doesn't operate under a market order. I would imagine that the loss of capital on any trade would be the same whether you enter on limit/market, or is it just the preset that matters for setting up the auto stop-loss???

I had messed around with the presets before and also edited the Attached Stop Order in the lower column. The only thing is I had set the Primary to a market order instead of limit order.

Is there any confirmation on the platform that the setting is in place once I apply it? Because I don't see any confirmation on screen to have a peace of mind.

loyek590 · Aug 28, 2015

it's easy for me, I don't give a shit if I am long or short, and I only enter on stops. So whatever stop doesn't get filled is my stop loss.

heavenskrow said:
That's pretty weird how it doesn't operate under a market order. I would imagine that the loss of capital on any trade would be the same whether you enter on limit/market, or is it just the preset that matters for setting up the auto stop-loss???

I had messed around with the presets before and also edited the Attached Stop Order in the lower column. The only thing is I had set the Primary to a market order instead of limit order.

Is there any confirmation on the platform that the setting is in place once I apply it? Because I don't see any confirmation on screen to have a peace of mind.

yeah no, the stop needs something to key off. You can set up a defacto mkt order just by configuring "buy limit ask plus" whatever you are comfortable with.

and then there are contigent orders. I never use them because it gets too complicated for me to remember what it was I was trying to do. There are a lot of options there in TWS.

Autodidact · Aug 28, 2015

IB is a good broker but that TWS is dog shit. Fortunately, the IB API is good enough and you can use third party software as alternatives.

stevegee58 · Aug 28, 2015

There are third party IB front ends that take care of things like this seamlessly.

Pricechange · Aug 28, 2015

cant believe IB still uses the TWS. They should either buy a good front end that is out there in use by many or run the licenses of one for each new IB client by default. You have newer account holders actually wasting much time on the learning curve of the shit program only to switch and use the API for something decent after much frustration

heavenskrow · Aug 29, 2015

loyek590 said:
it's easy for me, I don't give a shit if I am long or short, and I only enter on stops. So whatever stop doesn't get filled is my stop loss.

yeah no, the stop needs something to key off. You can set up a defacto mkt order just by configuring "buy limit ask plus" whatever you are comfortable with.

and then there are contigent orders. I never use them because it gets too complicated for me to remember what it was I was trying to do. There are a lot of options there in TWS.

I just want to make sure, you only enter orders through buy/sell stops?

Also I did everything you mentioned, and the auto stop loss was not set in place at all.

i960 · Aug 29, 2015

Enter orders with BookTrader and ensure you've setup the bracket defaults appropriately.

There's no need to set stops based purely off of percent of account, and I would argue its irrational. Set stops based off of significant levels but do not exceed a certain percent of account, where said percent is based on *conviction*. If you can't get a trade on without staying under a particular percentage deemed appropriate for the trade (e.g., 1%, 2%) then don't put the trade on. If you've got a great setup and you're at a great entry then feel free to increase size such that risk percent is still within bounds. If you're late or conservative then you match size to risk.

heavenskrow · Sep 1, 2015

i960 said:
Enter orders with BookTrader and ensure you've setup the bracket defaults appropriately.

There's no need to set stops based purely off of percent of account, and I would argue its irrational. Set stops based off of significant levels but do not exceed a certain percent of account, where said percent is based on *conviction*. If you can't get a trade on without staying under a particular percentage deemed appropriate for the trade (e.g., 1%, 2%) then don't put the trade on. If you've got a great setup and you're at a great entry then feel free to increase size such that risk percent is still within bounds. If you're late or conservative then you match size to risk.

I just talked with a rep over this issue. First rep that I asked weeks ago did not know what he was talking about.
Anyways this rep asked if I was using Mosiac or Classic TWS. It actually varies on how you set it up apparently . With Mosaic, you have to manually add stops whereas Classic the global preset should have an auto stop-loss.

I don't have much experience using Booktrader yet. I plan to slowly transition into that since it seems like that is more professional.

I do try to limit my trades to be selective in terms of low risk. However I sometimes enter on momentum, and if its a huge reversal area, with fast movement I want to make sure my risk is limited.