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The question begs asking, which online brokers have been confirmed by
traders on this list to handle the globex stops in the preferred way? Does
PFG Best? Does www.proedgeonline.com , commish as low as 5.70 RT using the
Pats system? Does anyone have comments on why not to use either of these?
----- Original Message -----
From: "Simon Campbell" <simtrader@xxxxxxxxxx>
To: "Omega List" <omega-list@xxxxxxxxxx>
Sent: Tuesday, February 11, 2003 4:18 AM
Subject: Re: IB TWS problem with stops
> Why any futures trader uses IB is beyond me given the way they handle
> stop orders. Unless they've finally made the long-awaited change of
> sending stops native to Globex (judging by the comments it seems not)
> then in my opinion, it's a mess because your stop is only held on IB
> servers which means:
>
> - your order will only get sent to Globex as a market order when the
> stop price is triggered. In the best of cirucmstances (when it works)
> this means that your fill takes the lowest priority. All stops at
> the same price held directly on Globex will be filled before your
> order is. Orders held native on globex are timestamped and queued.
> Even if you sent your IB stop order four hours earlier, Globex
> doesn't even know about it until after the price is hit ...because
> only then does IB actually send it off. Bottom line? time lag in
> getting the order off (even if <1 second) and bottom of the pile
> priority, all mean increased risk of a tick slippage. At $12.50 ES,
> what good is your extra $1 commission saving?
>
> - Your stop relies on IBs own datafeed to trigger it and send it to
> Globex. A problem with their datafeed means your order can go
> unexecuted. My understanding is that it's not a true streaming
> datafeed but rather a snapshot every second or so. What if the
> snapshot misses your stop price? Or what if the feed goes down for
> 10 seconds around the time your stop would be triggered? Your stop
> goes unfilled that's what!
>
> Contrast this to the situation where your stop is held directly on
> Globex. It's been timestamped and received by the entity actually
> doing the execution. It will receive preferred filling. Your PC
> could blow up, your brokers servers could explode ...and nonetheless
> you are guaranteed to get executed. The worst that happens is that
> your brokers order software goes iffy (it happens to them all) and it
> says your order is still working. But if you KNOW your order was
> sent to Globex you have total peace of mind that the truth is you
> were executed and they just aren't showing it yet. You can relax that
> any software glitch has no material impact on you. Contrast that to
> IB where you are sitting there with a "working" order and wondering:
> "was I filled?", "is the system just slow?", "am I still in the
> market?". Who needs that hassle in their life?
>
> To me, it's such a basic fundamental to have your stop orders only
> rest on Globex servers ...trading with them on a brokers' servers or
> keeping them on your PC is just insanity. Pay an extra buck or two
> and use a J-Trader platform* that holds stops directly on Globex.
> IMHO the commission savings of IB just aren't worth the extra risk of
> $12.50 slippage, the extra risk of unexecuted orders, and the mental
> stress it puts on your ability to successfully trade, when problems
> do occur. There's enough stress in trading without worrying whether
> your orders are filled or not.
>
> S.
> *Not all versions of J-Trader can send stops directly to Globex (some
> versions only hold them on your PC), but stand alone version
> 2.8.0.6.D does offer this capability.
>
>
> On Mon, 10 Feb 2003 14:29:06 -0800 (PST), Alex Matulich wrote:
> >Is there a way to fail-safe this problem? I can understand wanting
> >to place a stop order at the same time one places an entry order, so
> >that if your power goes out, your network goes down, your computer
> >blows up, or whatever, you still have that stop order protecting
> >you.
> >
> >However, If your data feed is running and everything's working fine
> >on your end, the software can place a market order to close an open
> >position, duplicating the already-open stop order. That way, since
> >both orders would be "to close," if one of them executes, the other
> >should simply fail and not execute because there's no position to
> >close.
> >
> >On the other hand, does IB make an adjustment to your account if
> >the stop order doesn't convert to a market order after the price is
> >touched?
> >
> >I don't use IB, but I'm considering them.
> >
> >-Alex
> >
> >
> >Jerry War wrote:
> >>I have had this happen many times. I have complained about it to no
> >>end.
> >>They gave me the same BS that their programmers were looking into
> >>it but
> >>after repeated calls to find out the resolution, I just got more
> >>BS.
> >>
> >>----- Original Message -----
> >>From: "MT" <mtzianos@xxxxxxxxx>
> >>To: <omega-list@xxxxxxxxxx>
> >>Sent: Monday, February 10, 2003 5:06 PM
> >>Subject: IB TWS problem with stops
> >>
> >>
> >>>Hi List,
> >>>
> >>>Since last Friday noon, I've had several instances where my
> >>>regular
> >>>(simulated) stops for Globex traded emini SP wouldn't be activated
> >>>(triggered) by IB. Instead the market would go through the stops
> >>>and TWS
> >>>would still the stop as an active order! It doesn't always happen,
> >>>but
> >>>it happened to me more than once.
> >>>
> >>>I've notified IB and their programmers are looking into this bug,
> >>>but I
> >>>thought it'd be useful for others to be aware of it.
> >>>
> >>>Regards, M
>
>
>
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