Does IB hunt stops?
- Thread starter lindq
- Start date
i don't know,if IB hunt any stops( i keep them on my side and execute them via API),but today i tried to create a limit stop order manually in TWS and it was executed immediately because for whatever reason, if you create stop limit sell or buy order-limit price is the ask price, BUT stop price is 1 dollar higher. this is at least in 906.9. and if one(like me) didn't pay attention-the result of the submission would be immediate execution.
why did they add 1 dollar to stop price-i have no idea.(btw-as i remember-it should be trigger price, but again-for whatever reason-trigger price is disabled)
bravo IB! brilliant as usual! how many trades executed via "smart" due this little trick?
see and try it yourself-
why did they add 1 dollar to stop price-i have no idea.(btw-as i remember-it should be trigger price, but again-for whatever reason-trigger price is disabled)
bravo IB! brilliant as usual! how many trades executed via "smart" due this little trick?
see and try it yourself-
This perplexed me at first too. As you realize though, it is easiest enough to change the default setting.
it wouldn't be a problem, if all those changes are documented anywhere at the moment of their release.but a)as usual-they are not and amount of those changes is so big-it would be really hard to follow for anyone anyway. specially when they release new build pretty much every single week.b) would it be better,more logical to just leave it blank? or put same price as stop price? why 1 dollar?
even if you put 1 dollar-then finish the fucking job,stop humiliating yourself on public, IT dept! or it's just too much for you? why not to do following-when customer select buy stop limit-you add 1 dollar,when customer select sell stop limit-you subtract a fucking dollar. right now -1 dollar is ADDED regardless. it's looks RETARDED. and cause nothing,but confusion and erroneous executions. i'm asking too much?
is it too hard to be logical and make it really user friendly,when you add\change some of your "features". i can only guess,how many erroneous executions are made because of this nonsense AH or premarket.
Yesterday evening I placed the following conditional order: "Submit Sell order for Emini DOW YM @ 11675 when 'Default' >= 11675"
It executed and it appears to be the exact high of the day (so far). So the opposite of stop hunting occurred to me today.
I remember reading in "Trading in the Zone" that said something like if you think the market targets your stops then it has something to do with your perspective of the market.
If course it is still possible that IB may hunt for stops illegally but I think that it would be to risky for them and they probably make enough money on commissions.
It executed and it appears to be the exact high of the day (so far). So the opposite of stop hunting occurred to me today.
I remember reading in "Trading in the Zone" that said something like if you think the market targets your stops then it has something to do with your perspective of the market.
If course it is still possible that IB may hunt for stops illegally but I think that it would be to risky for them and they probably make enough money on commissions.
About a month ago I received a fill in AUD futures on a limit order where I never saw price move down to my level. It was as if I was filled while the market was still 5 ticks higher, giving me an instant profit. That was sweet.
wow....whats the best way to answer this?...
btw: I still can't believe a thread like this exists
- The market does not care about you, your position or your opinions.... the sooner you realize this, the better for your trading.
- If your stops are getting hit its because your putting them in obvious places
btw: I still can't believe a thread like this exists
"Does IB hunt stops?"
No.
IB is the closest a regular guy (erm guy/gal, uh, you know) can get to fair treatment. They gave alot of people a chance to compete fairly more or less. I feel only gratitude towards them but wtf do I know? Greatest retail broker in the world.
Of course, if you actually make significant money you are going to get offers from banks to trade for .003¢ per share lol. I went that way but I kept my IB account and used it when it made sense to.
I don't trade now, not for almost 4 years so things may have changed but I rather doubt it. Just got busy with engineering work. Might try my hand again someday as I've acquired some additional coding skills.
No.
IB is the closest a regular guy (erm guy/gal, uh, you know) can get to fair treatment. They gave alot of people a chance to compete fairly more or less. I feel only gratitude towards them but wtf do I know? Greatest retail broker in the world.
Of course, if you actually make significant money you are going to get offers from banks to trade for .003¢ per share lol. I went that way but I kept my IB account and used it when it made sense to.
I don't trade now, not for almost 4 years so things may have changed but I rather doubt it. Just got busy with engineering work. Might try my hand again someday as I've acquired some additional coding skills.
I am a futures trader, not affiliated to any brokerage.
After many years of trading and general observation I can say that it always appears to me that brokers go after the stops just to stop me out. But the reality does not seem to be.
I have read many books on trading. They all pretty much suggest one of the trading techniques (for any trader) as looking at the popular stop levels and trade those. The volume of orders and fills at any calculated stop level is always much higher than the rest of the levels. It is because all traders are using those levels. Therefore when a level is triggered, lots of stop orders suddenly become market orders. Since the other side supply is still limited, bunch of those market orders quickly move the price and the price spikes through the stop and then once the volume dies down the the prices corrects back. To a novice it seems that his broker is just sitting there to chop him.
In my trading (live trading not automated) I stopped using actual stops (use only mental stops). I have a limit order constructed and ready to go and as soon as my mental stop is hit (which you can monitor by setting alerts) I activate my limit order.
In fact I take advantage of the popular stops. Say I have a working limit sell order at 10 points above the popular stop level. The stop level shows a pending volume of 100 contracts and very light volume above and below that level. When the stop is triggered the price quicly shoots through it, fills my order and goes back down.
Those who are complaining, are you using stops that are active 24 hours? Don't. During the after hours, the price volume being extremely low, stops are triggered very easily. Most broker platforms have the option of "stop avtive during regular hours only" or something equivalent. If you broker does not have it, change your broker.
Construction of stops incorrectly has lot to do with stops too. Very tight stops get triggered quickly.
Use "stop limit" stops Vs. "stop market". That way you will not get fills way off your stop price (slippage).
After many years of trading and general observation I can say that it always appears to me that brokers go after the stops just to stop me out. But the reality does not seem to be.
I have read many books on trading. They all pretty much suggest one of the trading techniques (for any trader) as looking at the popular stop levels and trade those. The volume of orders and fills at any calculated stop level is always much higher than the rest of the levels. It is because all traders are using those levels. Therefore when a level is triggered, lots of stop orders suddenly become market orders. Since the other side supply is still limited, bunch of those market orders quickly move the price and the price spikes through the stop and then once the volume dies down the the prices corrects back. To a novice it seems that his broker is just sitting there to chop him.
In my trading (live trading not automated) I stopped using actual stops (use only mental stops). I have a limit order constructed and ready to go and as soon as my mental stop is hit (which you can monitor by setting alerts) I activate my limit order.
In fact I take advantage of the popular stops. Say I have a working limit sell order at 10 points above the popular stop level. The stop level shows a pending volume of 100 contracts and very light volume above and below that level. When the stop is triggered the price quicly shoots through it, fills my order and goes back down.
Those who are complaining, are you using stops that are active 24 hours? Don't. During the after hours, the price volume being extremely low, stops are triggered very easily. Most broker platforms have the option of "stop avtive during regular hours only" or something equivalent. If you broker does not have it, change your broker.
Construction of stops incorrectly has lot to do with stops too. Very tight stops get triggered quickly.
Use "stop limit" stops Vs. "stop market". That way you will not get fills way off your stop price (slippage).