Spike destroying my trade (Sim)

[pkittali]

Hi,

I am using Simulated account (Sim101) and when ever I enter a Limit order in Charts, a long spike immediately fills my order and touches the stop loss. Is it because of internet speed?

Will this behavior be seen for a live account (I have a MBTrading).

Regards,
Praveen

[poeds]

What r u trading?
Try taking the opposite trade and exiting in the spike.
Do your your trades continue to move against you or does the spike represent the maximum draw down if so allow for that in your stop distance.
Check your pings and data loss (if any).

[NinjaTrader_Brandon]

Hello pkittali,

Thanks for your post.

What instrument (and expiry if applicable) have you selected?

(For a chart) what interval is selected?

Do you receive an error on screen? Are there errors on the Log tab of the Control Center? If so, what do these errors report?

[koganam]

Hi,

I am using Simulated account (Sim101) and when ever I enter a Limit order in Charts, a long spike immediately fills my order and touches the stop loss. Is it because of internet speed?

Will this behavior be seen for a live account (I have a MBTrading).

Regards,
Praveen

Sounds like you are trading one of the index ETF's: likely SPY or IWM?

[pkittali]

Hi,
This happens for stocks I ve been trading aapl, Fb. Usually in first hour of trading. Let me explain with an example:
Current price:115
Buy limit order: 115.1 lot of people may believe why stop limit order is more than current price, well this is my strategy.
Now when the price crosses entry price due to spike, it executes my buy entry, it also is supposed to trigger two orders profit target and stop-loss that I have kept 5 and 10 cents respectively. The spike touches 116 and returns to 115 and my entry order is executed as well as my stop loss. But it never triggers the profit target rather it executes my stop loss order after it touches 115.

[koganam]

Hi,
This happens for stocks I ve been trading aapl, Fb. Usually in first hour of trading. Let me explain with an example:
Current price:115
Buy limit order: 115.1 lot of people may believe why stop limit order is more than current price, well this is my strategy.
Now when the price crosses entry price due to spike, it executes my buy entry, it also is supposed to trigger two orders profit target and stop-loss that I have kept 5 and 10 cents respectively. The spike touches 116 and returns to 115 and my entry order is executed as well as my stop loss. But it never triggers the profit target rather it executes my stop loss order after it touches 115.

Hm. I was thinking of the reverse situation, where you are in a position and the market spikes to steal your stop.

What you are describing here sounds more like market dynamics. On a very quick spike, the exchange has probably not quite finished processing your entry order, so is unaware of your position, when your putative target is hit. Otherwise, in any case, your target order is at the back of the order queue, as it was only submitted after your entry order was filled. So the market simply could not clear the queue, on the spike, and you never got filled on the target.

If your broker is using native OCO, where all your orders reside on the order server, you could try submitting your protective orders first independently, then submitting your entry, instead of having your entry trigger the protective orders.

Even then, I would be leery. After all, with the Sim101 account, you are not using the broker/exchange fill engine, so the only real way to test would be to trade live in very small size. Unfortunately, at the kind of small size suitable for tests, I would think that the vigorish would chew up all the profits.

[pkittali]

Thank you for your reply.
You are right, unless I do not see with live trades it cannot be confirmed. Btw is machine speed or net speed also cause of spikes??

[koganam]

Thank you for your reply.
You are right, unless I do not see with live trades it cannot be confirmed. Btw is machine speed or net speed also cause of spikes??

IMHO, not as the cause of spikes. The spikes MAY be real. When I still traded stocks, I many times had my stop stolen by a spike. After MBTrading consistently refused to bust the trades, because they could see an actual print at the extreme of the spike, so claimed that it was a legitimate price, I got religion, and quit trading stocks on a short time basis.

Actually, now I never trade stocks unless I am exercised on options (which is also not common, btw). Even then, I manually exercise my stop on a closing price basis, rather than place a hard stop. (The spikes that took me out were taking me out of rather generous stops: I decided that I was not willing to risk the spike on that size of stop).

[NinjaTrader_Brandon]

Hello pkittali,

Thanks for your reply.

Please email us your log and trace files along with a date/time that this occurred.
You can do this by going to Help> Mail to Platform Support

We can then look at what spike you received and see if this is specific to the MB Trading data spike or if this is a spike you would see with any data feed.

Please see the link below on spikes in data from MB Trading.

http://ninjatrader.com/support/forum/showthread.php?p=377494#post377494

[pkittali]

Thanks Brandon. I will email you the details the next time I encounter the spikes.

Regards,
Praveen