Speed of IB's execution of market trades in fast moving Nasdaq stocks

[seancass]

There is no doubt that the capacity for sizeable gains (and losses) exists in the trading of good trending Nasdaq stocks, other than in the doldrums of course, and I have chosen a small group of indicators which, in association with trading a 75R tick chart, seems to offer reliable points of entry and exit in trending markets. However, when those stocks 'take-off' the tick charts move at the speed of light and fingers need to be very nimble to hit the appropriate hot keys when using IB.

I haven't traded this series of indicators and time frame with IB as I want to be reasonably sure that market orders via IB's smart routing are going to be filled almost immediately. Limit orders, I know, are a different kettle of fish entirely!

I do know that Richard (Mr Charts), is a great advocate of IB and his orders within the first volatile hour are, I understand, from listening to him in the past, filled to his satisfaction. I wonder whether Richard or others who trade Nasdaq stocks regularly with IB, using the smaller time frames, have any comments that could be useful in my assessment of the issues inherent in trading tick charts with often volatile Nasdaq stocks? I understand that this type of trading (almost scalping, I suppose) is more manageable in the post-US lunchtime period.

Many thanks,

Sean

 

[Trader333]

If you know your way around IB and how to route orders using hotkeys then it will not be an issue. Most people use SMART routing but this is not always the best option. In your above description and based on what I have previously seen, it is usually just before the momentum rush that Mr Charts will place an order and as such getting filled at a good price is less of an issue. However, if you are attempting to get filled during a fast momentum move then you may well find that you get filled at a much worse price than you had hoped for and stock quantity will also affect this.

The key to this is hotkeys and order routing if you intend to trade once the momentum has started in my view although, personally, I dont trade based on momentum.


Paul

 

[seancass]

Thanks for that, Paul.

I suppose the safest route is to trade the pullbacks, but often the best moves can be lost this way.

I spoke with Naz the other evening and he certainly knows his way around the order routing processes.

Are your trades longer term?

Sean.

 

[rog1111]

Hi Sean

If you're after instant Nasdaq fills, route to Island (ISLD). IB's TWS will simulate a market order, as ISLD is limit orders only. They're not always at the best bid/offer, but iif you're in a hurry at least execution will be fast !

Are you on for a traders meet up before the 29th ?

Brgds
Roger

I haven't traded this series of indicators and time frame with IB as I want to be reasonably sure that market orders via IB's smart routing are going to be filled almost immediately. Limit orders, I know, are a different kettle of fish entirely!