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GLOBEX T-Bond (ZB) during volatile times
- Thread starter PetaDollar
- Start date
Actually, I think that was pretty good performance considering the volatility. I mean, without a native stop on the exchange, something's gotta give, no way around it.
If by native stops you mean stops held at the exchange rather than on the server, which is how I shall interpret this, then consider the bund on eurex.
There have been times when the bund has been over a thousand up at least 10 ticks out ( since that's all I can see) and I have been filled over ten ticks away on a stop in a funky market.
I think one just has to take a view. The serious danger with stops in these big markets was illustrated only too well by the last non farm. Also, watch the book ahead of todays number. It goes so thin, like 10 ticks out to get filled on a hundred lot - oh yea - that anybody with stops is going to get absolutley killed. Because the liquidity will be so far from the market, the stops will go straight to that liquidity. Personally, I'll have bids/offers in a couple of big figures away just to try and grab some of this. Naturally the numbers this time will be bang in line, the market will do fuckk all, and I'll be a month late in my rationale, but there you go.
Having said all that by the way, whenever I get into a big position, I alwasy have a market stop in - it's just that i never have a big pos close to a big number.
hop e that makes sence
I have been watching the bonds around announcements, I think anything can happen to your orders. A few seconds delay and you can lose hundreds per contract, sometimes there may be gaps, I haven't watched the book but I am sure at times there is just no offers around. Anyway most of us who trade from home probably can't even rely on their data feed either during these few seconds. The way I see it, trading at those times, your risk is 1500-2000 per contract then you have to decide how much you want to risk, 2K, 5K, 10K ?.
Since he asked about stops during volatile times, I will relate my experience.
On many economic reports I will try to bracket the trading range with buy stops above and sell stops below to enter the market on the report in the direction of the initial move. This works somewhat well at times, except.....
During the big reports - either unemployment or fed announcement, the volatilty just explodes and even with a pretty wide (6-10 ticks away) stop orders, I usually hear the the dreaded "double bing" and one order gets hit and then the other gets hit one second later and you are out 600 buck per contract in a blink of an eye. Needless to say, I dont do that anymore. I wait at least minute to 90 seconds now after the big reports and usually dont trade it then either. Sometimes the big move is over by then, and sometimes not. Huge gambling component in my mind.
Mike
On many economic reports I will try to bracket the trading range with buy stops above and sell stops below to enter the market on the report in the direction of the initial move. This works somewhat well at times, except.....
During the big reports - either unemployment or fed announcement, the volatilty just explodes and even with a pretty wide (6-10 ticks away) stop orders, I usually hear the the dreaded "double bing" and one order gets hit and then the other gets hit one second later and you are out 600 buck per contract in a blink of an eye. Needless to say, I dont do that anymore. I wait at least minute to 90 seconds now after the big reports and usually dont trade it then either. Sometimes the big move is over by then, and sometimes not. Huge gambling component in my mind.
Mike