Stop Loss Order Returns More Loss

[algofy]

Thank you algofy,

I enter trades with a Stop Market so i am enter on the best market order.

Can I use a stop limit order for exiting where I protect myself for slippage and more loss? Rather then a stop market?

Yes you can use stop limit to exit but it's a dangerous game.....what if price gaps right through your order and never picks you back up.

 

[algofy]

Sorry, use stop market to enter trades as well. I put in at 50.20 and order filled at 50.24. I can avoid this by using a stop limit order where i choose the range of ticks i will enter or bypass the trade.

Correct stop limit 50.20 with an offset say 2 which means when price trades at 50.20 or better you will place a limit order if 50.22...most Times you'll get filled at 50.20, other times 50.21 or 50.22, rarely you won't get filled at all.

 

[SimpleMeLike]

Yes you can use stop limit to exit but it's a dangerous game.....what if price gaps right through your order and never picks you back up.

Thanks algofy,

Yes, I agree. I will stick to stop market order when exiting.

 

[Handle123]

Hello,

So, I started trading CL live this past week after trading sim for about 3 months.

Here is what I discovered that has cause me more losses then i expected.

1. Many times I enter a stop losss stop market order of -15ticks, but after the trade noticed I took an -15 to -19 tick loss. This didn't happen in sim mode. The extra ticks loss hurts me when trading 3 contracts and trying to stay withing a certain amount of loss per day.

2. The same with entries sometimes. I enter buy stop market to enter at 50.48 it fills at 50.47 or 50.49.

Maybe I need faster internet. Any help with this. Is this the cost of business or should I rethink my stop loss placement?

Thanks,

I remember long ago I used a stop and limit order as I was tired of getting slippage, what should have been worse case $200 loss became $450 loss cause price blew right through my stop and by the time I called the floor, it was filled really too much. We all learn the hard way.
Three months, wow, that is really nothing, guessing since you doing Topstep, it not your money? Easy come and easy poof. Good luck,

 

[victorycountry]

Yes I do experience the same thing. By the way, This could be a reason why I found that there is excess selling above a round number and excess buying below a round number...traders set their stop/limit orders at a round number. But because of slippage, trades are initiated just above and below a round number. Previous literature suggested that traders are biased by a round number and thus just below a round number seems substantially lower than a price a penny higher ($9.99) as discussed in marketing and sales research. if this is right then my results are correct that threshold trigger at round number is the most dominant round number effect but I could not find a reason why because literature report differently. Thanks very much simple, now I understand why I got threshold trigger effect at round number as the most dominant round number effect

 

[Deuteronomy_24_7]

1. Many times I enter a stop losss stop market order of -15ticks

This is very tight, given the multi-dollar swings this week. You could be stopped a few seconds after entry. Sounds like you're undercapitalized and trading scared.

 

[Trading Education Buyer]

Hello,

So, I started trading CL live this past week after trading sim for about 3 months.

Here is what I discovered that has cause me more losses then i expected.

1. Many times I enter a stop losss stop market order of -15ticks, but after the trade noticed I took an -15 to -19 tick loss. This didn't happen in sim mode. The extra ticks loss hurts me when trading 3 contracts and trying to stay withing a certain amount of loss per day.

2. The same with entries sometimes. I enter buy stop market to enter at 50.48 it fills at 50.47 or 50.49.

Maybe I need faster internet. Any help with this. Is this the cost of business or should I rethink my stop loss placement?

Thanks,

15 ticks is suicide to account

 

[SimpleMeLike]

This is very tight, given the multi-dollar swings this week. You could be stopped a few seconds after entry. Sounds like you're undercapitalized and trading scared.

Thanks Deuteronomy_24_7,

What stop loss range do you recommend? I am also testing 22 tick stop placement.

 

[zdreg]

So you put a buy stop at 50.24 and ended up executing at 50.20? That is reverse slippage and abnormal.

reverse slippage in equities is not unusual.

 

[d08]

Thanks Deuteronomy_24_7,

What stop loss range do you recommend? I am also testing 22 tick stop placement.

You might want to stop trading since you're asking this. Only you know this because only you know your strategy (if you have one). It entirely depends on what you're doing, no-one else can help.

OP might want to consider using something similar to IB's Adaptive orders or relative orders if on equities. This has it's downsides and upsides, there's not clear answer.