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Michael,
The only solution I can see regarding the problem that the brokers do
not appear to have received the order but have actually received it
is that the software offers the possibility to retrieve manually
(interaction by user) from the mainframe the status of all open
orders and closed deals. This way you can always check the status
before entering trades twice or more.
I would not trade with any software that does not offer this
possibilty.
One other big problem with electronic trading is the audit trail. On
my phone I can always switch on the tape recorder but most software
is dumb - no user interaction is tracked.
Someone mentioned here some time ago that they wanted to link TS to
some electronic entry system - I am still waiting for the results :-)
However having said all this the DTB, EBS and others are running
successfully electronic trading systems on a professional basis. And
apparently these are better than the open outcry market - see
competition DTB - LIFFE. EBS has now gained somthing like 50% of the
Forex market.
Gerrit
> At 05:07 PM 1/13/99 +0100, Gerrit Jacobsen wrote:
> >The main problem is that they do not trust the internet. That is why
> >the point of execution is always on THEIR side. So when the Internet
> >goes down after you hit the botton but before they get the message
> >then you are out of luck.
> >
> >I have seen very ugly problems because of this. So far there is no
> >other solution than using the phone because no broker will ever make
> >the point of execution/order on your PC. One small safeguard is a
> >good confirmation mechanism by the mainframe that confirms IMMEDEATLY
> >any action. However even this does not help: Suppose your line goes
> >down after you hit the button and before you receive the
> >mainframe confirmation. Thinking that the other side didn't receive
> >your order you will then execute twice...........
> >
> >The problems are endless when you try to syncronise to remote systems
> >over a faulty line (internet).
> >
> >I can't blame the brokers for their disclaimers.
> >
> >Gerrit Jacobsen
>
> I've had *exactly* those problems w/ my leased workstation from Timberhill.
> I've gone round & round w/ them over this but to no avail. Two examples
> from yesterday & today:
>
> 1. Yesterday I decided to buy an emini instead of my usual SP contract.
> Timberhill requires limit orders only on the emini. I had a sell limit
> order parked & ready if price fell back to my flinch point (mental stop).
> When it did I hit the transmit button & instead of the usually
> instantaneous status light color change for acknowledging receipt of my
> order on their end (followed by a beep a split second later usually), I got
> *nothing*.
>
> At a time like this you have to fight the urge to enter another order or
> call your backup broker. Timberhill insists you should call their help desk
> to confirm your order status. I did as I have many times before. Several
> minutes later their person finally advised they'd never received my order.
> Then, because the mkt had moved against me so much, I called my broker &
> exited the trade. I lost 425 bpts on that one. It could've been a lot
> worse. Their supervisor has told me the problem is in the internet & the
> route my orders take from here to them. Too many bounces, or a bottleneck
> somehwere along the way, & the software interprets the delay as a
> disconnection. I've been averaging 4-6 disconnects daily this week . Not
> from my ISP, but Timberhill's IB (TWS) *thinking* it needs to disconnect.
>
> 2. Today I decided to stick w/ the emini again (after the limit down Open &
> fast mkt conditions) so I entered a trade, rode it profitably until it
> began to fall back & exited (so I thought). When I hit the transmit button
> the order simply disappeared. After checking my executions window & status
> light to be sure the trade was really not there I re-entered & transmitted
> it. When I got my fill & went to the executions window to ck the fill time
> I saw the earlier (attempted) exit. Now I was double filled & had to
> construct another order to exit *that* trade. Fortunately, both trades were
> profitable. The supervisor @ the help desk had no explanation except to say
> to check w/ them immediately next time it happens.
>
> I've been doing that dutifully for months everytime something happens. Each
> time after waiting an agonizingly long time (which is totally unacceptable
> for trading in a volatile mkt such as the SP) I usually get some answer
> like "you're in" or "no order was received". Then I have to either re-enter
> the order (if my IB didn't go down) or call my broker (if it did).
>
> When it works, Timberhill is the best. But if the *best* still has these
> problems I forsee no solution until someone resolves the issue of internet
> delays or stoppages. Like it or not, it's the best I've been able to find
> so far. Things like ISDN, ASDL, or cable modems may speed things up on your
> end or keep a more reliable connection, but they cannot help you if the
> vast wasteland between you & the broker's computer loses the order or slows
> things down enough to cause your software to crap out.
>
> If there's a better way, please show me!
>
> Michael
>
>
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