Experience with Slippage/Delay on ES S&P 500 as you increase contracts?
I've heard rumors that slippage is a factor as you increase contracts on the S&P 500 Eminis, is there a level where that starts to affect my trades? 50 contracts? 75 contracts? And is there a level where I should start to look into other options to make my increase in contracts smoother?
Also, does anyone have experience with slippage? If so, care to share your stories?
For the vast majority of ES retail traders slippage isn't relevant because of their position size but because of news,
obvious order levels, and trading during low volume times.
Around news, slippage can be much higher because of the empty slots in the order book since many professionals don't
trade into news. Obvious order levels and order types means that retail customers often place their orders in the noise
area around obvious support and/or resistance levels, often combined with "naive" order types like stop buy/sell.
Higher slippage during low volume times is rather self-explantory.
The following 3 users say Thank You to choke35 for this post:
Good to know, thank you for your information. My most recent trade exit at 30 contracts had a 2-tick slip when I tried to close. I'm just starting to increase my contracts after finishing my beginner's course, I didn't get much information before about the transition from low contracts to high contracts. Didn't seem like a low-volume moment when the 2-tick slip happened, and I was trading at a resistance level, not related to news. Fluke slip? Or is there another explanation?
Greatly appreciate the responses.
The following user says Thank You to superbdude for this post:
Haha, probably both. Technically it's my 3rd completed course. Anyway, is anyone reading this trading the same number or higher? I just want to know if there is anything I don't know about or should be concerned about as I increase contracts. Or is there somewhere I can learn more about the hidden perils of trading higher amounts?
Just starting to increase your size eh. What's next, 100 contracts? Or is that for after the advanced course?
"Free markets work because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or incentives for skill. The strategy is, then, to tinker as much as possible and try to collect as many Black Swan opportunities as you can"
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