IB's Buy Stops Don't Work on NYSE Stocks?

[version77]

Quote from sprstpd:


Were you watching POT during this episode? Was there a time where you noticed your stop wasn't working? If so, did you immediately cancel it and send in a market order?

No I was not watching POT at the time. I am usually watching
100% of the time when I am using buy/sell stops. Just this once
I had something to do where I could not watch it. I started up
TWS, the stop was just sitting there unfilled. I watched for about
5 minutes wondering why it hadn't triggered since the price had
been hit an hour before. Then it triggered about 5 cents higher
than what it was when I started up TWS.

Lesson learned: Don't use buy/sell stops when you are not at
the computer...or anytime for that matter. I will stick to limit orders...

That way the specialist can pick me off along with the others...

 

[zdreg]

Quote from sprstpd:



Being compared to OldTrader seems like a compliment to me given the content of his posts.

No, the blown stop is not your responsibility. However, as a trader, it is your responsibility to know your execution platform. One of the features of IB is its simulated stops. It is your responsibility to know they are simulated and that if IB has stale market data due to electronic error, there is no way for them to send your stop order correctly. Every brokerage will have difficult days in terms of electronic communication. The internet will have days where it will break down. The real question is if you, as a trader, are prepared for these events and how you will handle the situation.

Were you watching POT during this episode? Was there a time where you noticed your stop wasn't working? If so, did you immediately cancel it and send in a market order?

How about having a backup alert system - most quote providers have some sort of alert program that will beep if a stock hits a certain price. Make sure the data feed is not IB for redundancy purposes. When you hear the beep you can check to see if your IB stop order is active or not. If it isn't, then you can submit the order manually. I realize you shouldn't have to do this, but the realities of electronic trading are that you can be cutoff from your electronic brokerage at any time. You have to be prepared.

The solution you are seeking is within you. The solution is not bitching at IB for electronic failure.

clever solution but too much for some prima donnas of this board who worry specialist will set off their piddling orders. just sen direct to nyse instead of smart routing. problem seems to be more with listed than nasdaq.

 

[sprstpd]

Quote from zdreg:


clever solution but too much for some prima donnas of this board who worry specialist will set off their piddling orders. just sen direct to nyse instead of smart routing. problem seems to be more with listed than nasdaq.

In IB's NYSE section, it claims that all stops are simulated. This implies that even if you route the stop order directly to the NYSE using the TWS, the stop would not reside at the NYSE. You could still encounter version77's stop problem if IB's NYSE market data was not working.

 

[i'mlong]

Quote from OldTrader:



Just a few comments:

1) Before you knew what had happened or whether there was a problem at all, you were posting here on the board hammering IB. Not the way a professional handles matters in my opinion. The first step is to contact IB, find out if you are filled. If there is a problem with the fill, you then discuss that with IB to find some type of resolution. Hammering the broker before you even know if there is a problem, or for that matter, before you have discussed it with them is a sign of immaturity.

2) What you received is a standard form letter. This letter by itself would not be acceptable to me. I would want to know more about what happened and why it happened, so that I could take some sort of steps to remedy the situation. But if this is really true, that it is a problem with "market data", then the implication is that the stop was held on the IB server, not on an exchange. And therefore you opened yourself up to an error when IB had a problem that happened to coincide with the triggering of your stop.

I would want my stop to be held on an exchange, not on IB's server...and therefore that's one element of what I would want to determine here. Frankly, if your stop was held by IB, and you had a means of having it held by the NYSE for example, you in the end have to take the responsibility for not knowing how to best enter your order to protect yourself.

Now, if your stop was actually held by an exchange, and IB claims the problem was "market data", that is bullshit. But I doubt that is the case. I might add that I am a supporter of IB, I trade with them, I think they are a great company. But when I start to see or hear the above letter more than a few times, I start to think IB is not remedying the problem, and that is it high time to remedy the problem.

OldTrader

are you saying its IB's fault for holding the stop order on their servers?