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Some years ago (before the emini was as heavily traded as it is now), I did
enough analysis work between the big SP and emini to convince me that total
commissions, spread, and slippage were lower on 5 emini than 1 SP under
normal market conditions. In years of trading thousands of emini contracts,
I have rarely used anything other than stop limit and limit orders to enter,
and stop limit and market orders to exit. I can count on the fingers of one
hand the number of trades I have missed due to using limit orders.
I suppose, if one is trading breakouts and/or chasing ticks, one might have
to use market orders. However, even breakouts can be successfully traded
with stop limit orders. If one is trading retracements and projections
and/or higher time frames, one can readily take their time with limit and
stop orders without missing trades.
If one wants to use another index to trade the emini, one can still park
limit orders and hit Transmit when the primary index hits the number. One
must, of course, have timely price data.
Earl
----- Original Message -----
From: <phil@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, March 02, 2003 2:57 PM
Subject: [RT] Re: What type of order should I use?
> The question is one that can easily be asked in liquid markets as
> well. My methodology was created specifically fortrading the big S&P,
> with trades entered on a stop. Trying to trade it with minis gives
> the same invariable question. The minis are known for overshooting
> the big S&P, thereby possible giving false entry and exit signals. So
> what do you do? Enter on a stop thats 2 ticks further? Adds up at the
> end of the month. Enter on a limit? You might miss a big move. Most
> of my subscribers that trade the e-minis have taken to simply enter a
> market order when they see the Big S&P hit its entry stop...
>
> All the best,
>
> Phil
> www.sp-levels.com
>
> --- In realtraders@xxxxxxxxxxxxxxx, "Jason Armstrong"
> <jarmstrong444@xxxx> wrote:
> > Hello Group,
> >
> > I am new to trading and was hoping I might
> be able
> > to draw on the experience of some of the veterans in this group for
> some
> > guidance. Here is my situation: The markets I trade are thinly
> traded. To
> > prevent excess slippage I would like to confine my entry to a
> specific
> > price. When the market rallies to a specific price level I would
> like to buy
> > at that price. I can't use a buy limit order, because my broker's
> trading
> > platform interprets these as 'limit or better' and I will get filled
> > automatically when price is below this entry level. If I use a buy-
> stop I
> > risk some serious slippage when that level is hit. I could use a
> stop-limit
> > order, but then my order will be at the back of the line when that
> price
> > level is hit. What type of order I should be using? I should also
> mention
> > that this order will be placed on globex. Any help would be greatly
> > appreciated.
> >
> > Best regards,
> >
> > Jason.
>
>
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