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You are playing Russian Roulette with your customer's orders. There is no
way anyone could do what you are purporting to do on a large number of
orders, or even just a few at the same price point. The next time you are
sitting there with half a dozen or so stops not already placed in the
market and there is some 40 or 50 handle surprise in about 60 seconds, you
(and your customers) are going to get slaughtered. You are missing the big
picture.
The few times the mini makes a price excursion beyond the regular S&P is
just not worth the risk you are exposing your clients to by not having
stops in the market. Not only that, but if you want to stare at the screen
and feel there is a sufficient number of those excursions to justify not
having a stop in the market, why not fade them. You, not to mention your
clients, would be exposed to much less risk.
Regards,
Tom Alexander
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From: Mark Morrison <mmorrison@xxxxxxxxxx>
To: kernish@xxxxxxxxxxxx; mguess <mguess@xxxxxxxxxxxxx>; RealTraders
<realtraders@xxxxxxxxxxxx>
Subject: RE: Mini/SP discrepancy
Date: Wednesday, July 28, 1999 6:48 PM
Steve --
No, I don't jest -- I do this for many of my clients. The fills are
usually
very good, sometimes better than the regular S&P stop price. Occasionally
I
do get a bad fill, but what really matters is that we avoid stops getting
hit that shouldn't be hit because the E-mini went crazy but the regular S&P
didn't.
How do I do it? I use CQG for quotes (the best available), price alerts,
and electronic order entry. I sit at my desk 99% of the trading day, and
wait with my finger on the trigger when a stop gets close. If there is a
real move underway in the S&P, I can usually beat the majority of E-mini
traders who have slower quotes and/or a slower order entry method.
Mark Morrison
Professional Market Brokerage, Inc.
Chicago, Illinois
> -----Original Message-----
> From: owner-realtraders@xxxxxxxxxxxx
> [mailto:owner-realtraders@xxxxxxxxxxxx]On Behalf Of Steve Karnish
> Sent: Wednesday, July 28, 1999 3:35 PM
> To: Mark Morrison; mguess; RealTraders
> Subject: Re: Mini/SP discrepancy
>
>
> "Another alternative is to ask your broker to hold your stop orders and
> wait for the regular S&P to hit the price before executing a market order
> in the E-mini."
>
> Certainly you jest?! Please explain how waiting for the regular
> S&P to hit
> a price would prevent an ugly fill in the mini. Most brokers won't think
> of taking the contingent order you described. Do you stare at the screen
> and "time stamp" the ticket the moment the regular S&P hits the price? I
> find it hard to take orders, enter orders and chew gum at the
> same time ...
> without having to monitor every tick. I guess I'm confused about the
> logistics.
>
> Steve Karnish
> CCT
>
>
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