Should I queue for execution?

T

Trader_Herry

Should I queue for execution?

My approach is to get into trade before news announcement or breakout. I am not in a hurry to get into the trade.

I tried for several times in IB Ideal and IdealPro. I queued at the "best bid + 1 tick" and waited for someone to fill my orders, but no one filled my order.

Did anyone try to queue and get filled successfully?

I wonder if I should simply take the bid/ask or wait for execution.
 
Quote from Trader_Herry:

Should I queue for execution?

My approach is to get into trade before news announcement or breakout. I am not in a hurry to get into the trade.

I tried for several times in IB Ideal and IdealPro. I queued at the "best bid + 1 tick" and waited for someone to fill my orders, but no one filled my order.

Did anyone try to queue and get filled successfully?

I wonder if I should simply take the bid/ask or wait for execution.
More...

*shakes head* yet another person trying to jump in on news. Let me put it to you this way. By the time you get the news, regardless of which news provider you have ... the market makers will have got the data as well and will pull their bids/offers and requote at a mor appropriate level. If you think that with your standard internet connection you can push an order within that time then keep trying but don't expect to get any fills. If you want a guarnateed fill .. go for a market order ... and be prepared to get slipped massively.
 
Quote from Trader_Herry:

Should I queue for execution?

My approach is to get into trade before news announcement or breakout. I am not in a hurry to get into the trade.

I tried for several times in IB Ideal and IdealPro. I queued at the "best bid + 1 tick" and waited for someone to fill my orders, but no one filled my order.

Did anyone try to queue and get filled successfully?

I wonder if I should simply take the bid/ask or wait for execution.
More...

It's dangerous in my opinion but I have manged some sucsessful straddles before news announcements in forex. I can't speak to other markets on this strategy because I have not tried it outside of foriegn exchange. It just depends on how you feel and what sort of risk you want to take. You have to have a very good feel for the daily and hourly price range for at least three days before the announcement. Additionally, you damn sure want to know where the support and resistance levels have been for the week. If you feel like you want to try it, set your positions just above and just below the main support and resistance in anticipation of a breakout long or short. If your platform allows it, set up a "One cancels the Other" order. This is a one shot deal, it either works right away or it doesn't. Know what your risk is, and where to decide to get out. There are some news announcements that are just insane (NFP in the US for example...really I don't know why since most US economic reports are sanitized, i.e. bogus) and there can be a flurry of price activity. What you should do is study the reports that you are thinking of trading thorougly. Make sure you understand what they are saying in terms of a countries economic health and what information derives that report. Then take it a step further and look back in time at those reports. The reports of today have a lot fewer items being reported than in the past (ex. US reports). National governments are not beyond "modifying" their reports if a factor that they reported in the past would reflect negatively to it's citizens in the present day. In the US, we just drop that item from the report. The masses are none the wiser. But, it behooves you to know what comprised the report in the past, and if that factor was added in, what would the report really look like? Sometimes these reports may come out sounding rosy but the market doesn't buy it. Could it be because the smart money added in the dropped factors? I don't know. The trick is to set your long and short entries just outside the normal range and noise and take into consideration past movements on the stated report. This is key. You know what the normal daily range is, now add in what the range is with the past reports hopefully capturing the right breakout. You have to have some idea of the potential movement of range and price behavior in order to set the right entry orders. IMHO, there is really no hard and fast rules for this, but be smart about it and be prepared to bail at your stop loss if needed. Also, I have noticed that's it best to be prepared to take profit fairly quickly. After the novelty (emotional response to the report) wears off, cooler heads prevail.
 
Quote from sccz97:

*shakes head* yet another person trying to jump in on news. Let me put it to you this way. By the time you get the news, regardless of which news provider you have ... the market makers will have got the data as well and will pull their bids/offers and requote at a mor appropriate level. If you think that with your standard internet connection you can push an order within that time then keep trying but don't expect to get any fills. If you want a guarnateed fill .. go for a market order ... and be prepared to get slipped massively.
More...

Thanks for your advice.

Yes, you are right. At that point, it is already too late to get in, not to say queue to get in.

But how about if I do it long before the breakout (the news announcement), not when the news comes?
 
Quote from Trader_Herry:

Should I queue for execution?

My approach is to get into trade before news announcement or breakout. I am not in a hurry to get into the trade.

I tried for several times in IB Ideal and IdealPro. I queued at the "best bid + 1 tick" and waited for someone to fill my orders, but no one filled my order.

Did anyone try to queue and get filled successfully?

I wonder if I should simply take the bid/ask or wait for execution.
More...

Right, you are not going to get filled that way much of the time, because of the different / opposite way that IB IDEALPro is programmed to handle stop and stop limit orders. In a nutshell, it's double bid for long, double ask for short. If you've cut your teeth on almost any other retail forex platform and are used to single ask for long and single bid for short, you'll need to consciously change your entry MO.

http://www.elitetrader.com/vb/showthread.php?s=&postid=1129338#post1129338
 
Dear Offshore,
Thanks for your detailed explanation.

I have a question.

Let's say I predict the market is going to rise before the news. I would like to get in before everyone else. But well, I don't need to be in a hurry since I have plenty of time to get in. The market is still ranging.

Now the price is around the bottom of a range and it's time for me to get in.

The market depth is as follows (fictitious example):
Bid
05m----1.3450
15m----1.3449
05m----1.3447

Ask
10m----1.3456
05m----1.3457
05m----1.3462

What should I do?
- Take the ask price
- Queue at the midpoint (ie 1.3453)
- Queue in front of the best bid (ie 1.3451)
- Queue at the best bid

I once tried to queue, waiting for a fill in the ranging market (Note: I'm not in a hurry, nor the market). However I waited for long and no one take my orders. As the price starts to rally, I couldn't afford missing a chance, and took the ask.

Any advice?
 
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