Trailing Stop in IB's TWS

Originally posted by stevet
the point is - that it is not being done by everyone - since markets move erractically - it is hard to keep updating a trailing stop manually - and this potential problem is new to markets now since it is only executable with trading platforms

and this is only a theoretical problem - but that does not diminish the dangers for a broker - in that its not the potential market meltdown thats the problem - but all the accounts that might get closed due to whiplashing causing hits from stops being activated way below the envisioned level - with either no equity left or minus equity
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Trailing stops are offered through some broker dealers. The question is, "Do you want the latest, most advanced weapons in you war chest?" The answer for me is, YESSSSSSSSSSS!!!!!!!

If I'm in a fight and some people have knives and some have guns, I want a gun. And I want the best dam gun I can get.
Ak 47 vs 22 pistol etc. etc. etc.

If I'm a broker, would I rather my clients have an opportunity to be out on a trailing stop that got triggered at a lower than expected price, or my clients still sitting on that position hoping and praying with considerably less equity than would have been possible. No one broker controls the market and no one broker's clients are going to cause a major stock slide just because their common stops got hit (except in a very thin market stock, (which everyone here should know to avoid or be willing to accept considerable risk).

Any broker not allowing trailing stops, is in my opinion, behind the curve using outdated weapons and imposing the same strategy on their clients.
 
which broker offers a trailing stop?

and do any professional traders use trailing stops ( as opposed to placed stops) as part of their strategy?

i use placed stops to close postions at key levels - and i move the stop behind the market - but the stop is at the next important key level - not an arbitary level - exactly x points away from the market

i have assumed that the term "trailing stops" on here - means x points away from the market - which is a way that rookies believe can lock in profits
 
Originally posted by stevet
which broker offers a trailing stop?

and do any professional traders use trailing stops ( as opposed to placed stops) as part of their strategy?

i have assumed that the term "trailing stops" on here - means x points away from the market - which is a way that rookies believe can lock in profits
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Trailing stops harkens back to the days of once a day phone trading using end of day data.

Anyone who is really in the market is not using trailing stops.

IB probably wants the more active trader and someone who wants to use trailing stops is not that active a trader.
 
1) Someone have requested named for brokers having trailing stop, CyberTrader is one of them, I think that Terra nova have it also now. With TradeStation v6 it is easy to do it. This feature is frequent on many major software since some months. Why not give this feature at IB traders if this could help to reduce their exposure at risk for some people.

2) It is not true that active trader don't use trailing stop, usually they use mental trailing stop, but if these traders aren't all the day on their console this could be another tool inside their toolbox.

3) If IB want only very active traders, why not ask to set the minimum for stock account at 25kU$... it will be better choice rather than limit the trailing stop.
 
Originally posted by def
pesos.

the chairman of the firm has a strong opinion on trailing stops. perhaps he'll change his mind over time. you can read it on the ibmgt response links
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Maybe IB can add a 'trailing alert' to TWS instead. That way the trader can just watch the market when it approaches their trailing stop area and execute an order if they feel it's necessary.
 
This topic has been discussed at great length in a previous thread and I don't want to start it up all over again. But I must say that I have yet to see/hear one iota of evidence that trailing stops are evil.

I guess that I must respectfully disagree with IB and others who hold the same opinion.

I do want to clarify one thing. Stop losses do have many uses (lets just put aside their good/evil debate for one second) and one of them is this, when you have an open position you can enter an appropriate stop from your knowledge of the chart/stock and then move on to another potential setup. This allows you to multiply your edge and your profits.

Tony Oz uses them all the time for this purpose.

On the other hand if you trade one and only one instrument (QQQ, SPY, NDX, whatever) then this use of stops isn't really valuable.
 
the buck stops with the chairman and I don't fault his reasoning (whether I agree with it or not) as it is an interesting argument. win some/lose some. at least with the API the ability to add trailing stops is available and with the ongoing programming from several charting vendors into the IB platform it should be easier to implement shortly.

Finally, it is pointless to argue for trailing stops here as I will not make the recommendation again (feel free to join one of the threads on the IB web site which brings up the subject).
 
Originally posted by Babak
This topic has been discussed at great length in a previous thread and I don't want to start it up all over again. But I must say that I have yet to see/hear one iota of evidence that trailing stops are evil.
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Ok I'll prove it once and for all.

Take the word "TRAILING"

subtract letters #2, #6, #7 and #8.

There, that proves trailing stops are evil.
 
the issue should be wether trailing stops are of any value or not and since they are not of any value to a successful trader, it would be probably better to let rookies have them, so that they can get one more reason that they are not making money, out of the way

the armegedon risk of trailing stops, although a theoretical problem, probably does not arise, since a succesful trader would not use them and therefore the impact of the few rookies using them, has no conscequence

i'll be happy to pick up the contracts as winning positions are closed due to a quick retest of a lower or higher support/resistance level which blows out a bunch of trailing stops
 
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