Fast market Lesson: Stops can get rejected

John9999 said:
I hear you... I had a stop that blew straight thru my limit and executed at a much lower price to exit my long on NQ trade yesterday... UGLY!

but this is the very first time it has happened in over a year that I can recall... it is rare and I still firmly believe in stops on every trade
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I so agree. Stops on every trade. So it was automated trading but you were watching it when it happened?
 
Yup, it was automated, and I was watching fortunately. I only run when watching. I would have been okay if I wasn't, as my target would have eventually been hit...but my stop was supposed to be 2 ticks...and I went as low as 80, within seconds.

Completely my fault, but I learned something today and for that I'm grateful
 
sss12 said:
a stop or a stop limit order ?
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Stop/market.... so it converts to a market order when touched... USUALLY it is the same price, but not always like yesterday.... honestly had I paid enough attention to the price action I would have stood on the sidelines... the NQ was putting in 60+ pt moves on 5 minutes bars... normally it is about 10-15 or so....
 
John9999 said:
Stop/market.... so it converts to a market order when touched... USUALLY it is the same price, but not always like yesterday.... honestly had I paid enough attention to the price action I would have stood on the sidelines... the NQ was putting in 60+ pt moves on 5 minutes bars... normally it is about 10-15 or so....
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After getting burned on an emergency fed rate cut many moons ago, I will only trade ES with a stop market. Yes you may get slippage in a fast market but it's never been very much if you are trading 100 lot or less
 
IAS_LLC said:
Yup, it was automated, and I was watching fortunately. I only run when watching. I would have been okay if I wasn't, as my target would have eventually been hit...but my stop was supposed to be 2 ticks...and I went as low as 80, within seconds.

Completely my fault, but I learned something today and for that I'm grateful
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I am glad you were watching and that it worked out.
 
To be clear, I attempted to place a stop market, not stop limit. Issue was the trigger price was below the market at the time it hit the exchange (within ms of open fill). Not sure if this was a Rithmic reject, or a cme rejected...but I'll find out.
 
IAS_LLC said:
To be clear, I attempted to place a stop market, not stop limit. Issue was the trigger price was below the market at the time it hit the exchange (within ms of open fill). Not sure if this was a Rithmic reject, or a cme rejected...but I'll find out.
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What is your trading platform?
 
Traderjohnsblog said:
Not necessarily. A fast market can jump a stoploss order. Even a stop loss needs a counter party to trade with. If everyone is running for the hills and price has moved far from your stop it may never fill.
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that's rubbish, the fill might be unpleasant though.
 
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IAS_LLC said:
100% custom combination of c++ and python. I use Rithmic API for data and execution.
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Ahh, so probably not graphically intensive, and assuming you have millisecond interface resolution, I guess it was just a quirk in the speed of the markets that day (been intense) and maybe coupled with a delay in your internet latency.
 
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