Trading large quantities - how to guarantee execution - Traders Hideout | futures io social day trading
futures io futures trading


Trading large quantities - how to guarantee execution
Updated: Views / Replies:861 / 8
Created: by weemac74 Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Trading large quantities - how to guarantee execution

  #1 (permalink)
Trading Apprentice
Fort Myers, FL
 
Futures Experience: Beginner
Platform: Nothing
Favorite Futures: Mutual Funds
 
Posts: 2 since Sep 2014
Thanks: 0 given, 0 received

Trading large quantities - how to guarantee execution

I am looking at a basic strategy of trading a "biggest mover" of the day. I would be using a large sum of money ($300,00 +), my plan being to get in for just a 1-2% gain, then get out (this being on a stock that is moving say 40% for the day). My concern, especially when I go to sell, is that all of the order is executed and I am not waiting for the shares to become available while I watch the price drop. Is there any means/tactic I can employ to prevent/minimize the likelihood of an order not being filled, especially at this volume. Depending on the price, I could be executing upwards of 20-40,000 shares. Any help is appreciated folks. TIA.

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Como, Italy
 
Futures Experience: Advanced
Platform: Tradestation, IB
Broker/Data: Tradestation, IB
Favorite Futures: ES
 
Posts: 158 since Aug 2014
Thanks: 236 given, 228 received



weemac74 View Post
I am looking at a basic strategy of trading a "biggest mover" of the day. I would be using a large sum of money ($300,00 +), my plan being to get in for just a 1-2% gain, then get out (this being on a stock that is moving say 40% for the day). My concern, especially when I go to sell, is that all of the order is executed and I am not waiting for the shares to become available while I watch the price drop. Is there any means/tactic I can employ to prevent/minimize the likelihood of an order not being filled, especially at this volume. Depending on the price, I could be executing upwards of 20-40,000 shares. Any help is appreciated folks. TIA.


Maybe I didn't understand your question but it looks you are going to trade a big size on a stock very volatile(can move 40% in a day) and you have a problem to close the position at 1/2% profit.
Ok if it is so, just think that if you have this problem in close the position in profit you will have the same and worst when you try to close it in stop. You may have also this problem to enter in position.
Simply you are trading a bigger size than the book allow you....if you can't close in 3/4 price levels ...most likely.
So in my view I would not do that.
The only advice that you may have already considered is to use iceberg orders to reduce at least the impact and visibility of your order on the market(if market support them)

Reply With Quote
 
  #4 (permalink)
Trading Apprentice
Fort Myers, FL
 
Futures Experience: Beginner
Platform: Nothing
Favorite Futures: Mutual Funds
 
Posts: 2 since Sep 2014
Thanks: 0 given, 0 received

I guess I'm talking just placing a market order at a price that looks good, then watching it for a few ticks (say 1-2%), and then placing another market order to get out. I am concerned that at this volume that I might not be able to have the order executed. Or if it does, it has changed much beyond where I wanted to execute at.

Reply With Quote
 
  #5 (permalink)
Elite Member
Prince George BC Canada
 
Futures Experience: Advanced
Platform: IBs TWS
Broker/Data: IB
Favorite Futures: Stocks
 
deaddog's Avatar
 
Posts: 591 since May 2013
Thanks: 97 given, 643 received

What are you trading?
What is the average daily volume?
What is the usual spread?

It is hard to find the Truth when you start your search with a preconceived notion of what the Truth will be.
Reply With Quote
 
  #6 (permalink)
Administrator: Retired Backtester
 Vendor: speedytradingservers.com 
Rennes France
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: IB/Kinetick
Favorite Futures: Futures
 
sam028's Avatar
 
Posts: 3,366 since Jun 2009
Thanks: 3,572 given, 3,982 received

The easier would be to record what's happening in the book during such events, and see if in theory your order would have been filled, then do some statistics.

Success requires no deodorant! (Sun Tzu)
Reply With Quote
 
  #7 (permalink)
Trading Apprentice
Orlando, Florida
 
Futures Experience: Advanced
Platform: DAS Pro, Fision DMA, Sterling PRO
Favorite Futures: Equities
 
Posts: 9 since Apr 2014
Thanks: 17 given, 3 received

If the instrument is traded very thinly, you will only get your order filled on market. A limit order will only fill a small portion, depending on your luck. Hence, your cost average will be way higher than you may have wanted. You will also likely face the same issue getting out, resulting in a skewed cost average.

Couple this, along with your costs and it will probably make your strategy null and void

Reply With Quote
 
  #8 (permalink)
Trading for Fun
Buffalo, NY
 
Futures Experience: None
Platform: Python, Excel, R, Ninjatrader
Broker/Data: IB quandl
Favorite Futures: Low frequency trading
 
Posts: 64 since Jul 2014
Thanks: 4 given, 37 received

Sounds like a great idea, what could possibly go wrong!

Reply With Quote
 
  #9 (permalink)
3rd times a charm!
San Francisco CA
 
Futures Experience: Intermediate
Platform: Ninja
Broker/Data: CQG
Favorite Futures: ES
 
Zxeses's Avatar
 
Posts: 139 since Jun 2014
Thanks: 90 given, 171 received


weemac74 View Post
I am looking at a basic strategy of trading a "biggest mover" of the day. I would be using a large sum of money ($300,00 +), my plan being to get in for just a 1-2% gain, then get out (this being on a stock that is moving say 40% for the day). My concern, especially when I go to sell, is that all of the order is executed and I am not waiting for the shares to become available while I watch the price drop. Is there any means/tactic I can employ to prevent/minimize the likelihood of an order not being filled, especially at this volume. Depending on the price, I could be executing upwards of 20-40,000 shares. Any help is appreciated folks. TIA.

I don't mean to de-rail the question, but.. Why trade a 40,000 share stock when you can trade a 50k e-mini future at 0.0016% of the cost/margin in a day trade under the same trade idea/strategy?

I realize some teach the stock trader guys that trading futures is "dangerous" but (IMHO) trading 40k of stock in most markets is much more dangerous then trading ES-Mini in a thick market for the same benefit level.

Consider this:

40k (cash) of APPL stock, at $100 per share = 400 shares
1 dollar of profit on APPL stock = $400

8 contracts of ES emini for day-trade ($4000 margin) according to your idea of scalping, since this is a day trade
8 points x4 easy ticks each = $400

So for $4k you can get into and out of a trade without creating a blimp on anyones radar screen, make more then you could trading a hot stock, and suffer no slippage 'cept for your market orders.

Make sense?


Last edited by Zxeses; September 17th, 2014 at 12:48 AM.
Reply With Quote
The following user says Thank You to Zxeses for this post:

Reply



futures io > > > Trading large quantities - how to guarantee execution

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
QPAS: Open Source Trading Journal w/ Performance, Risk, and Execution Analytics imPairsonator Trading Journals 2 August 25th, 2014 12:00 PM
FHA Bailout Risk Looming Larger After Guarantee Binge: Mortgages GridKing News and Current Events 0 March 27th, 2012 03:28 PM
Obama says he cannot guarantee Social Security checks will go out on August 3 GridKing News and Current Events 7 July 14th, 2011 08:27 AM
Broker for order execution using MC auto+manual trading SPTrading MultiCharts 18 July 9th, 2011 09:40 AM
Boomers: Retire Here, With Money-Back Guarantee Quick Summary News and Current Events 0 July 12th, 2010 07:00 PM


All times are GMT -4. The time now is 11:43 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-12 in 0.12 seconds with 19 queries on phoenix via your IP 54.234.255.29