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With IB API you can have stops initiated on you computer but never put in the exchange.
Application running on you computer receives real-time data through API and when stop is hit
it will place order through API to execute buy or sell immediately. It is the same as if you watching
quotes and place order yourself. The only difference is that you may take couple seconds to place
order manually while computer will take couple milliseconds to do the same. On a fast market these
couple seconds may save you a couple thousands dollars.
Regards,
Vladimir
-------------- Original message --------------
That is true but, from my experience even if the stops are on my computer they still need to be initiated and put in the exchange. I only loose sleep on the intial position entries. If my positions are correct I don't worry about it anymore and move my stops down to my entry price. So the lack of sleep is for the initial position period only. Thanks for your response I'm going to look into it. I'm a trying to eliminate complexity, but modernizing has its benefits. I'm old fashioned in my trading approach to the Dow. Other markets i'm more sophisticated.
(quick note: I bought the dow at trend line support at 10400. The theory being that next week is end of the month and bonuses must me paid to the fund managers. The funds hold the most positions. There should be bounce up with two factors. Trend line support and end of the month profit taking. If this support level does not hold then it is very bearish sign and a retest of the 10000 level is possible. This might be one of the major trend I missed this year. That would be 8 of the 9 trade. I missed most of this trend due to early profit taking. 10700 down to 10100 approximate. The 600 point move I mentioned before.)
KS
KS
v <entinv@xxxxxxxxxxx> wrote:
KS,
You can fix "no sleep" problem by switching to Interactivebrokers. They provide API that allows to keep you stops
on you home computer, so nobody can see them. There are some utilities on their website sold and given away for free
that may provide that capability. If nothing suits you needs you may program it yourself or delegate the job to professionals.
For the rare case of lost internet connection you may want to set an alarm on you computer that will wake you up.
Of cause UPS is a must.
Regards,
Vladimir
I trade daily, intraday, or position depending on how the charts
look. The reason I say "no sleep" is that I don't put stops in
because all electronic orders can be viewed by other traders because
the real time quotes puts them up for everybody to see. This means
that stops will get picked off. You will experience this for
yourself, when it goes down to hit your stop and then proceeds to go
back up again. Since it is electronic it means instantaneous fills
or close to it. When the price hits my loss target I put the order
in at the market, This is the stop process the Turtles made famous
and is probably the only thing that is useful from what they
originally did. Of course I'm referring to electronic markets of dow
mini and others. I do not trade the pit contracts unless I'm
position trading even then I prefer the electronic. The leverage or
granularity you talk about is only relevant if you talk about risk.
The higher the point value the greater the risk to reward ratio. If
you are beginning i would recommend the dow mini contract. $5
dollars a point and $2500.00 a contract. Volatility meters and price
range can help with money management portion of the trading. The Dow
market are the easiest to trade because they trade in a range bound
pattern. Take a look at a historical chart of the dow futures
contract. Do not chart the mini. Trade by the Big Contracts and
enter in the mini contracts.
(example of my last trade would be: I shorted the mini sep dow at
10700 with a target stop loss of 50 points or $250.00 and it went to
10734 and collapsed to 10580 which then I exited at the market
because it hit trend line support. I checked the stop orders place
at the time the market went to 10734 and the last stop order was at
that price 10734, then the market collapsed. So the reasoning is
that if I could see it the big leverage players will move the market
to pick off the buy stop and let the market go down to its proper
trend. My stop method is from years of experience in this market
and requires the ability to immediately exit a trade when the target
stop loss is hit. It does not matter if it goes back down. You get
out. Any change in this money management technique will cause losses.
One quick note : I tested with real money with a coin flip. I
entered long if it is heads and short if it is tails. I put the stop
loss at 1% or $25.00 or 5 ticks. With this money management
technique I was profitable. Basically random entry into the market
with a proper money management system made it profitable. Trading
is 90% money management 10% technical. I use to think it was the
other way around but it took awhile to figure this out.
KS.
--- In equismetastock@xxxxxxxxxxxxxxx, "metastkuser"
<andysmith_999@xxxx> wrote:
> KS,
>
> If you don't mind a few questions:
>
> 1) Do you daytrade ES and YM or trade multi-day?
>
> 2) Do you see any benefit from the added granularity of YM over ES
> (i.e. YM tick is $1, ES tick is $0.25, but YM is 10x ES which means
> ES=$0.25 and YM=$0.10 in apples-to-apples). Does YM's finer
> granularity allow your stops to be shaken out less?
>
> 3) Leveraging cuts both ways, but e-mini traders only speak of it's
> goodness (as you are confirming). Why is that? Have you never been
> hurt by the high leverage?
>
> 4) "Sleep is not an option because of night trading". I'm assuming
> vigilant stop placement for ES/YM end-of-day traders allows for
sleep?
>
> Thank you for your help, KS.
> Andy.
>
>
> --- In equismetastock@xxxxxxxxxxxxxxx, "formulaprimer"
> <formulaprimer@xxxx> wrote:
> > I can't speak for anybody else but I have been trading the Dow
> > Futures and Dow Mini and S&P mini since it began. Once you trade
> > them you will never go back to stocks. It is because of the
> > leveraging. All the indexes move in direct relation to the
Stock
> > Market indexes so any long term direction must be done with the
Big
> > Board not the mini's. Be warned the Night Trading moves the
market
> > tremendously sometimes and sometimes sleep is not an option.
> > Otherwise if your technical analysis is at a high level you will
> > like it. August issue of Futures magazine I think has a good
article
> > on options.
> > KS.
> >
> >
> > --- In equismetastock@xxxxxxxxxxxxxxx, "metastkuser"
> > <andysmith_999@xxxx> wrote:
> > > Vladimir,
> > >
> > > Thank you for taking the time to answer my questions.
> > >
> > > In your experience, how would you compare trading the index
versus
> > > trading the futures? For example, trading ES vs. SPX, or NQ vs.
> > > QQQQ,... I know the leverage is very different, but besides
that
> > how
> > > has your experience been?
> > >
> > > I have heard that once a trader moves from stocks/indexes to
> > futures,
> > > they never return to stocks...
> > >
> > >
> > > --- In equismetastock@xxxxxxxxxxxxxxx, "v" <entinv@xxxx> wrote:
> > > > From my experience future always track the index. For
example
> > > either you
> > > > trade QQQQ or NQ
> > > > the only real difference is the leverage.
> > > >
> > > > Comparing futures to equities if you mean individual stocks,
the
> > future
> > > > never goes bankrupt therefore it's
> > > > safer to buy. Futures, both commodities and indexes appear
to
> > > better comply
> > > > with the technical analysis
> > > > studies in comparison with individual stocks. Many
individual
> > > stocks are
> > > > not liquid enough to trade and
> > > > those most liquid would track corresponding industry/group
> > indexes.
> > > >
> > > > Never heard about Track N TRade before. Looks interesting
> > > >
> > > >
> > > > -----Original Message-----
> > > > From: equismetastock@xxxxxxxxxxxxxxx
> > > > [mailto:equismetastock@xxxxxxxxxxxxxxx]On Behalf Of
metastkuser
> > > > Sent: Saturday, August 20, 2005 11:56 PM
> > > > To: equismetastock@xxxxxxxxxxxxxxx
> > > > Subject: Re: [EquisMetaStock Group] Using Metastock to
trade
> > FUTURES?
> > > >
> > > >
> > > > Vladimir,
> > > >
> > > > "It doesn't provide continuous contracts, but for ES and
YM
> > you can
> > > > use SPY/SPX and DIA/DJI if you need longer term picture."
> > > > -- yes, it occured to me that I can use SPX instead of
ES,
> > and DIA
> > > > instead of YM. But, does the future always track the
index?
> > Wouldn't
> > > > the future move much faster than the index if the index
made a
> > sudden
> > > > large move?
> > > >
> > > > How do you like trading futures compared to equities?
> > > >
> > > > By the way, have you heard of Track N Trade for
backtesting
> > futures?
> > > >
> > > > --- In equismetastock@xxxxxxxxxxxxxxx, "v" <entinv@xxxx>
wrote:
> > > > > For EOD futures I'm using HSQuote from
> > > > > http://www.downloadjunction.com/product/software/4358/
> > > > > It doesn't provide continuous contracts, but for ES and
YM
> > you
> > > can use
> > > > > SPY/SPX and DIA/DJI if you
> > > > > need longer term picture.
> > > > > Intraday I'm using MetaServer RT for Interactivebrokers.
> > > > >
> > > > > I don't trade options on futures.
> > > > >
> > > > > Regards,
> > > > > Vladimir
> > > > >
> > > > > -----Original Message-----
> > > > > From: equismetastock@xxxxxxxxxxxxxxx
> > > > > [mailto:equismetastock@xxxxxxxxxxxxxxx]On Behalf Of
> > metastkuser
> > > > > Sent: Saturday, August 20, 2005 8:18 PM
> > > > > To: equismetastock@xxxxxxxxxxxxxxx
> > > > > Subject: Re: [EquisMetaStock Group] Using Metastock to
> > trade
> > > FUTURES?
> > > > >
> > > > >
> > > > > Vladimir,
> > > > >
> > > > > If you don't mind answering a couple of questions:
> > > > >
> > > > > 1) I'm only interested in S&P 500 e-mini (ES) and mini-
Dow
> > > (YM). I use
> > > > > Reuters for stock/indices end-of-day data. I don't
want to
> > pay
> > > for the
> > > > > omplete futures eod package. Do you know where I can
get
> > eod
> > > data for
> > > > > just ES and YM?
> > > > >
> > > > > 2) Options on futures. I currently trade options credit
> > > spreads on SPX
> > > > > and would like to try credit spreads on ES and YM. Do
you
> > trade
> > > > > options on futures? Can Metastock support this?
> > > > >
> > > > >
> > > > > --- In equismetastock@xxxxxxxxxxxxxxx, "v"
<entinv@xxxx>
> > wrote:
> > > > > > Yes, I do.
> > > > > >
> > > > > > Vladimir
> > > > > > -----Original Message-----
> > > > > > From: equismetastock@xxxxxxxxxxxxxxx
> > > > > > [mailto:equismetastock@xxxxxxxxxxxxxxx]On Behalf Of
> > metastkuser
> > > > > > Sent: Saturday, August 20, 2005 5:53 PM
> > > > > > To: equismetastock@xxxxxxxxxxxxxxx
> > > > > > Subject: [EquisMetaStock Group] Using Metastock to
> > trade
> > > FUTURES?
> > > > > >
> > > > > >
> > > > > > Anyone using MS to trade futures?
> > > > > >
> > > > > >
> > > > > >
> > > > > >
> > > > > > SPONSORED LINKS Business finance course Business
to
> > business
> > > > finance
> > > > > > Small business finance
> > > > > > Business finance consultant Business
finance
> > magazine
> > > > Business
> > > > > > finance schools
> > > > > >
> > > > > >
> > > > > >
> > > > >
> > > >
> > > ---------------------------------------------------------------
----
> > -------
> > > > > --
> > > > > > --
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