STOPMARKET order in a fast moving market

[dadarara]

hi
yesterday on the 5min MNQ. chart , the strategy issued an order of
entryOrder=EnterLongStopMarket(CurrentTradeSize,18 285 ,"Entry5");
at the end of 6th 5min candle
the market was very fast and the order was rejected because the price was above the STOP at the time the order was received by the broker.

So far I do get the issue of the price above the stop, however, it is a STOP MARKET order. so I would expect that the order will immediately convert to market. and still execute
with whatever unfavourable high price it may be , but still executed immediately.
if it was STOPLIMIT, than I get it that it should reject if above the stop and the limit even.
what am I missing ? does it has to do with the Managed order methods ? will it be different with unmanaged ?
In another broker (IB). when I issue such an order, it is immediately turns into market and executes.

[NinjaTrader_ChelseaB]

Hello dadarara,

With most brokerages, a stop order must be on the correct side of the market (above the current ask for a buy and below the current bid for a sell) or the order will be rejected due to an invalid stop price.

https://forum.ninjatrader.com/forum/ninjatrader-8/strategy-development/1281255-calculationmode-price-giving-errors?p=1281337#post1281337

To prevent the error you could use logic to submit a market order instead of a stop market order if the desired stop price is below the ask or above the bid.
Or you could increase the distance from the market price.

[dadarara]

what doesnt make sense is that if I have a STOP market order , that should become MARKET and take me out of the position , WILL BE REJECTED at time of extreme market movement.
is that what you are saying? the price will move past my stop and continue its move , while my order will be rejected ??
it should be HARD STOP. even if the slippage will be huge... it still has to trigger .
what am I missing ?

[NinjaTrader_ChelseaB]

Hello dadarara,

The order has to be accepted with a valid stop price before the order can be touched and filled at market.

If the order is never accepted, because the stop price is invalid, it cannot fill at market price when touched.

[dadarara]

ok. make sense. so are you saying also that this stopMKT order can not immediately turn into MARKT even if the stop price is beyond the market current price? will the unmanaged method of order entry act differently ?

[NinjaTrader_ChelseaB]

Hello dadarara,

A stop order with an invalid stop price will be rejected. Because it is rejected it cannot fill.

This applies to the manually submitted orders, orders submitted by the brokerage themselves (if you call and ask for an order to be submitted), orders submitted by a strategy using the managed approach, and orders submitted by a strategy using the unmanaged approach. Meaning it applies to stop orders, no matter how they are submitted.