Market chat

[RogerM]

Helen - with the OCO orders on IB, can they be set for the same stock. e.g. you sell short at $50 with a target of $48. So can you set a buystop at (say) $50.20 and a limit order at (say) $48.20? Then the first order to trigger cancels the other order so that you have nothing working? This is possible on CMC, and very useful it has been as well!

Can't get any sense out of the IB helpline.

 

[Henry]

Hi Options, I've tried both and AutoTrader is working well for me. I haven't encountered the same problems as Helen, maybe I've just been lucky.

BracketTrader uses Stop Limit orders for the Stop, which can easily be missed in a fast moving market, so I wont use that one.

I agree that you could enter the stop at the same time as the entry order directly with TWS, but the nice thing about using AT is you can have your stop predefined and enter at bid or ask with a single click - good for rapid entries. You don't have to use it for auto stops either, it makes a nice scalping tool for one click orders

H.

 

[Helenqu]

Hi Roger,

Yes you can set the OCA orders up like that on IB no problem. I haven't done it myself but Austin showed me how to do it and it isn't difficult. The IB instructions are hopeless for that sort of thing though.
I could "try" and talk you through it sometime if we can find a convenient moment. If not I'm sure Austin would help you.

 

[options]

Thanks for the input guys, and for your concern Helen. As you know one of my styles of trading is quite similar to yours and I am in and out very quick sometimes, (No wonder the wife has the hump all the time.)
Even to the extent of a one bar in and out,

Most of my placed stops are emergency stops really as I nearly always take my mental stops. (Easy for real, surprisingly harder for sb ing) Then always end up having to cancel the original stop.

But an automatic trailing stop in a programme would be handy to have.

Are there any T2winners (T2winners... I like that) anyway, is anyone from here inteligent enough to come up with a similar java based program for liffe/IB/sierra trading, that's simple and robust enough for our English tastes. (I dunno... Got a funny feeling about those other progs...)

I only ask 'cause I'm too thick to come up with anything like that myself. Still can't work out how to get buy and sell arrows onto my charts.
Anyone care to make a name for themselves with the IB public?

Options.

 

[Henry]

What sort of thing do you have in mind Options? Interfacing an automated trading system to IB is something I'm looking at outside of hours.

H.

 

[options]

Don't really know Henry. Similar to the one already on there I suppose. It just seems to me that the Americans always seem to make things too complex.

Options.

 

[tjbw]

I would have thought AutoTrader would fit the bill, works with IB and LIFFE IIRC.

Do you find it too complex in some way?

Barry

 

[budda]

Hi

New here and interesting discussion about IB and trading SW.
I use GNI and looking into IB as an alternative.

Just been to the IB forums and looks like Quotetracker supports IB quite well. I use Quotetracker for streaming intraday charts using Advn feed. Just wondering if any IB traders use Quotetracker as a trading platform with IB and how well it works.

http://www.quotetracker.com/ib/ for those interested.

 

[sifts2win]

BeM,
You said it 'was difficult to place a stop loss with Fin Spreads'
Are u crazy. That's the one reason I use them alone !
As soon as you've placed your trade go straight to your 'open positions' page and its all there ! Place your stop anywhere you like, market order or their spread quote, whatever.
Give them a ring if you're not sure. You need to know this stuff. You can't trade without stops, its like climbing everest without ropes and no clothes on !

 

[BeM]

bigblue,
I bought "the new market wizards".... I don't know what to say... how did you find it? It's interesting that this book is quite famous. I had read "the reminiscences of a stock operator" before and reading this book (the new market wizards) the first thing that came to my mind was... what a crap! Reminiscences of a stock operator is a fantastic book, one of the best books I've read. The new market wizards, as I see it, is nothing but an attempt to make money by the author, nothing extraordinary, just a book, not worth keeping in the personal library anyway.
Thanks a lot for your suggestions, I appreciate it, but I personally hated the book.

s2w,
Yeah, I found out later

 

[Skimbleshanks]

Sifts2win - I've never climbed Everest without ropes and no clothes on, but I'll take your word for it

 

[sifts2win]

Skimble,

ok, ok I was in a hurry !

 

[Naz]

I guess this thread is quiet because we've all been trading Nasdaq stocks where loads of large liquid ones are up over 100% in the last 5/6 weeks.You dont need to be a level 2 Nasdaq trader to profit from these moves just a normal internet brokerage (non daytrading account ) would do and you dont need $25k to open one of those.

If you like t/a its a great place to use it.

If you want to take your trading a little further you've got the level 2 screen with direct access.

Ask yourself this if your an index trader what %age has your index moved up during this period?

I'm in the market to make profits and i dont want to be trading some sluggish market that dosnt move thats why i and many others trade the Nasdaq!

This of course is only a personal view and anyone can loose all or part of their account trading any market.

 

[Naz]

Attatched are the charts of some Nasdaq semi conductors showing their large recent moves.You can see how t/a can work well with them.Their %age increaes recently are such that there was plenty of oppertunities for the astute trader however he/she trades to take some profits.

QLGC makes a nice island reversal at the bottom before it soars.

CREE and MXIM break a trend line before blasting off.

GNSS,LRCX and MRVL make some nice fibonacci pullbacks in their accent.

 

[options]

Naz,
and using L2 would have given you a clue before the chart showed it?

Options.

 

[Naz]

options.

For me those fib pullbacks are one of the best trades to look for.You can see whats happening and feel whats happening on the level 2 screen.Put your t/a and level 2 together and manage the trade.I was actualy talking to clickevents whilst stalking DCTM, posted below and told him i was just waiting for the fib pullback.When it came i was there absolutely on the nose.You dont have to daytrade some of these when youve got large profits going i sell half, widen the trailing stops and run them for some days as long as its in the same direction as the market trend.Somertimes i get stopped out but use the level 2 screen to look for another entry.

Here are some more decent moves on the Nasdaq recently

 

[Naz]

Take the DCTM stock.
After it broke out above $15 which for t/a players was a break out from a triangle,i stalked it by having it on a watchlist looking to get in again on the pullback.

However where is that pullback going to be?

Many t/a players would think it would be at the breakout price of $15.Not so smart reading of the level 2 screen showed that they wanted to take it lower.It was my level 2 screen that gave me my entry just above$14,which also happened to be a fib level.$18 was where i sold out my second half because it was as clear as driven snow as soon as it got there on the level 2 screen.

I re entered again where the chart showed near $17.38 after its mini pullback using complete level 2 skills,because i could see what was happening and i could manage the trade with decent stops.

Now a few things.That stock set itself up nicely but level 2 helped to see exactly where the best entry and exit were.It was a Volatile stock so it meant decent profits.In 2 days the initial pullback move made 25%.You do not need a $25k account to get Nasdaq level 2 direct access and trade this particular way.

Many successfull US daytraders were doing this style of trade in their second accounts.I have seen them earn more in their second accounts than scalping in their main ones.

 

[tradesmart]

Thanks for the examples and comments above Naz, inspirational stuff for us would-be Nasdaq Level II traders.

I’ve had a look at http://www.tradestation.com as I notice that you’re using it’s abilities to great effect, particularly on the t/a front; but according to the website (which is absolutely brilliant by the way) TradeStation is not available to UK citizens now, can you confirm this?

With reference to the $25,000 account minimum that you mention, I understand that this is the margin account minimum under NASD rules that gives you up to 4:1 trading power to $100,000. I’ve noticed from other websites (see http://www.rmltrading.com ) featuring the Realtick trading platform, that you can start an account with a little as $5000, which will obviously severely limit your trading possibilities as no margin is available, but would enable you to learn the software/market before risking big money. I understand that RML Trading will allow accounts for UK traders.

Also UK traders can start a Realtick account with http://www.terranovatrading.com but their account minimum is $10,000 (some variation here!). UK accounts are not listed as available on their website, but when I phoned them they said UK was ok.

UK traders should beware of the Realtick option offered by http://www.ird.com at £140 a month – this is only a ‘viewer’ version; you can’t actually trade with it (a slight handicap!)

Regards, TradeSmart

 

[options]

Back to the old prob then of how to get a decent L2 set up to trade from this country. My view is it has to come from the USA as any attempts from UK brokers etc will only result in sub standard screens and attempts to rip us off through price and add ons etc.

Naz, is still working on a site to supply both live and delayed L2, but I think a few things are being added to the software.

I'm always looking for better entries on trades and if the real time price on L2 is reasonable then I shall probably change to the nasdaq in the afternoons, On those last examples from Naz, even Sbetting may become viable.

Options.

 

[sgrech]

Naz,
Help me out me here. Re fibs, I sometimes am unsure as to the start point and end point.

On the attached image, should I drawn the start point of the uptrend from A, B, C or D.

Also do you find that when fib level co-incides with a seperate support level (assuming uptrend), that these opportnities offer a higher probability of success.



Thanks in advance.
Simon