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I'd presume the reason would be that you'd get some slippage with
stop orders, even in the minis...
Phil
www.sp-levels.com
--- In realtraders@xxxxxxxxxxxxxxx, "M. Simms" <prosys@xxxx> wrote:
> Earl - I am curious as to why you don't use STOP orders ?
> Is it because of the problem reported by IB customers whereby those
orders
> are "parked" and not placed in the CME electronic order book until
they
> become market orders ?
> All of my systems testing normally uses STOP orders, rarely limit
orders,
> and never STOP LIMIT orders since Tradestation does not support
that order
> type.
> > -----Original Message-----
> > From: EarlA [mailto:earl.a@x...]
> > Sent: Sunday, March 02, 2003 5:17 PM
> > To: realtraders@xxxxxxxxxxxxxxx
> > Subject: Re: [RT] Re: What type of order should I use?
> >
> >
> > 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@xxxx>
> > 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.
> > >
> > >
> > > To unsubscribe from this group, send an email to:
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> > >
> > >
> > >
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> > >
> > >
> > >
> >
> >
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> >
> >
> >
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> >
> >
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