Does IB hunt stops?

Quote from stock777:

you enter a bid for 9.95 on a 10.00 stock and you think its strange that you either get hit and the stock kicks back up , or they buy in front of you.

easy cure, take offers, hit bids. with penny spreads there's little reason not to. I prefer to buy the bid, but that's because I'm old school.
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Stupid question, but if the book is thick, how are you able to buy the bid unless the market moves against you? Luck, or a fast computer program?
 
Quote from automated:

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).
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Great post, automated. Thank you. I learned a lot. Could you please explain this part a bit more:

"The stop level shows a pending volume of 100 contracts and very light volume above and below that level."

How do you see this?
 
Pookie, "how do you see this". I am not sure if you are being sarcastic.
If not, here is what I mean.

On the CL DOM price, say you have ask price (number of contracts offered): 80.93 (21), 80.94 (32), 80.95 (14), 80.96 (230), 80.97 (11) and so on. Current price is hanging around 80.92 or so for a while (a while in futures probably is a minute or two), and the 80.96 level volume holds consistently near that high level, this in my opinion indicates that resistance is at 80.96. Since there is again low volume above that level, once the price breaks through that price level it will spike higher.

I hope i made it clear enough.
 
Quote from automated:

Pookie, "how do you see this". I am not sure if you are being sarcastic.
If not, here is what I mean.

On the CL DOM price, say you have ask price (number of contracts offered): 80.93 (21), 80.94 (32), 80.95 (14), 80.96 (230), 80.97 (11) and so on. Current price is hanging around 80.92 or so for a while (a while in futures probably is a minute or two), and the 80.96 level volume holds consistently near that high level, this in my opinion indicates that resistance is at 80.96. Since there is again low volume above that level, once the price breaks through that price level it will spike higher.

I hope i made it clear enough.
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Nope, not being sarcastic. I really didn't know. You made it plenty clear for me. Thank you! :)
 
Quote from stock777:TWS/Server based stop is being flashed and then stop run by TH
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I have no clue what you are talking about.

TH can see all posted orders (IB or other) and they can see all internalized orders before they post to the market. This is very easy/simple.

I never said IB was hunting stops - just that TH can see all the orders from IB.
 
I know a guy who worked for a "low commission" firm, not IB, I mentioned this post to him and he confirmed that he was instructed to hunt for stops, would like to hear from ex or current employees of online brokers
 
Quote from bigpapi:

I know a guy who worked for a "low commission" firm, not IB, I mentioned this post to him and he confirmed that he was instructed to hunt for stops, would like to hear from ex or current employees of online brokers
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Gunning stops. What a joke. The instrument you trade is going to be pushed to take out your little trade. Too funny.
Considering a minority make majority money of course stops get hit. I'm just off to sweep my trading room for listening devices.
 
Any shmuck can hunt for stops if they are willing to move the market to a given price.

wtf does hunt even mean? are there any real traders here, or are you all just posting nonsense for kicks?
 
Ninja Trader does work with IB. Only draw back is you will need to keep your computer running all the time so use a UPS.

The benefit, all stop and limit orders are on your computer and not seen by IB. All automation and AI are on your computer and not seen by IB.

Also, NT is a much better front end than anything IB has for free. Someone did say they would help program something for me in NT to run while I am asleep, but I have not heard back from them.
 
Happened again today...placed a conditional order (when price was around 11580) to "Submit sell order when 'Default' >= 11598".

Executed 1 point from the high. Edit: for Emini DOW YM
 
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