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8 or 9 times out of 10, you'll get filled at your stop limit. the other times, the
market will race through the stop; leave you unfilled, and before you know it, you
have an average trade's worth of slippage. It is interesting to note that in most
systems, 20% of trades produce 80% of the performance. Many of those 20% trades
very often have a 0% drawdown, ie they never look back. Here is the trick. if you
get to know your system enough to know when to force entry at market, you can make
it. Otherwise leave it.
Gwenn
Tony Parker a écrit:
> Gwenn Ael Gautier et al:
>
> arb suggested that the placing of Stop Limit Orders might improve
> the chance of getting better fills in the New York markets.
>
> Would such a strategy also be good one in a slow or illiquid
> market?
>
> What do you see as the down side of a Stop Limit order as opposed
> to a simple Stop Order.
>
> Gwenn Ael Gautier wrote:
> >
> > Nobody said trading is easy. It is where nobody ventures that you find the
> > best opportunities. Otherwise, you are competing with hundred others for the
> > same ticks. Yes, in illiquid markets you can be fooled around, and hence you
> > should not attempt to daytrade, however trading at the open or the close only
> > is not too difficult. Now just as benefits are potentially greater, so are
> > the risks: There's no free lunch...
> >
> > Gwenn
> >
> > Desmond Sutherland a écrit:
> >
> > > I would think that it is non-liquid markets that are prone to whipsaws
> > > etc. In a liquid market the bid-ask spread is fairly narrow and one can
> > > get in and most importantly, GET OUT, fairly easily. In a non-liquid
> > > market, the bid-ask is very wide.
> > >
> <SNIP>
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