ES Plunge -4000 contract to wipe out all the stops

[Bad_Badness]

So 7 point round trip? Sounds good. I'll take 2.5-3.5 of those please. What's next?

 

[NoahA]

STOP blaming the robot!
STOP giving wrong information !!!

There was no 3.5 points slippage.
The 4000 contracts in 5 minutes were very small!
the average number of contracts is 20000 contracts in 5 minutes.


There were many happy traders on 13 Nov.
Because ES went up massively by 90 points on 13 Nov.
It started to go up during the mid-Asian session !!!
It continued to go up during the European session !!!
And it continued to go up during the US session !!!
So many traders profited from this massive movement.

There are no killer robots killing day traders.
So stop blaming the robot, and start to profit massively from trading ES.

First we have to get the facts straight. There indeed was a huge sell order that ate up all the bids on the way down. The following is a one second chart.

As we can see, it happened in one second, and very quickly retraced back up, then slowly back down again to test the low before making new highs.

For the OP, in my opinion, this does happen every now and then, and sometimes it leads to continued selling, and other times you get shaken out like this, only to see it go higher. It seems predatory, but who is to say that this isn't a result of some breaking news? When news hits, it acts exactly the same, only that the selling continues.

For practical purposes, you can either have a wide stop, and accept that sometimes you stay in and it doesn't affect you, other times you take a bigger loss, or you have a tight stop, and suffer the consequences every now and then. With trading, everything happens every now and then, and every action/strategy has pros and cons. The trick is to be consistent with your tactics.

 

[maxinger]

First we have to get the facts straight. There indeed was a huge sell order that ate up all the bids on the way down. The following is a one second chart.View attachment 244105

As we can see, it happened in one second, and very quickly retraced back up, then slowly back down again to test the low before making new highs.

For the OP, in my opinion, this does happen every now and then, and sometimes it leads to continued selling, and other times you get shaken out like this, only to see it go higher. It seems predatory, but who is to say that this isn't a result of some breaking news? When news hits, it acts exactly the same, only that the selling continues.

For practical purposes, you can either have a wide stop, and accept that sometimes you stay in and it doesn't affect you, other times you take a bigger loss, or you have a tight stop, and suffer the consequences every now and then. With trading, everything happens every now and then, and every action/strategy has pros and cons. The trick is to be consistent with your tactics.

strange ...
from my chart (600 volume chart) , there is no spike during that said time frame.

 

[NoahA]

strange ...
from my chart (600 volume chart) , there is no spike during that said time frame.

Wrong time frame. After the 3554 low on the spike, it never traded lower. Your chart shows a low at 51 and 48, so doesn't match up at all

 

[maxinger]

Wrong time frame. After the 3554 low on the spike, it never traded lower. Your chart shows a low at 51 and 48, so doesn't match up at all

our charts didn't match.

anyway, let's rest the matter.

 

[TimtheEnchanter]

Well, perhaps it was not the algo bots as they seldom trade that size. Most likely a hedge fund or institution but I could be wrong. It is my understanding that algo bot scale in and out 1-2 lots 1000 times maybe but not like this, all at once. I was merely observing it in AB's trading room who was caught in this slippage of 3.5 points. If you did not see it in your chart, it make no difference - I saw it!