July '04 Forex
- Thread starter Newtron Bomb
- Start date
- Watchers 17
Thanks Goober for confirming re FXCM stops/ limits.
It sounds too good to be true and you know what they say about things that sound too good to be true!
Seems in this case it is true though.
I've been toying with the idea of opening an account with them for a while and finally leaving behind my cmc sb account. I think now is the time!
Darren
It sounds too good to be true and you know what they say about things that sound too good to be true!
Seems in this case it is true though.
I've been toying with the idea of opening an account with them for a while and finally leaving behind my cmc sb account. I think now is the time!
Darren
No way Hose!
Still sticking to the futures. 2 pips (more if you count bucket shop bias) is one hell of a difference long term.
Like I've said today is the very first time I haven't had a fill on the EUR/USD in over 6 months of trading. I can deal with that.
Remember it cost me nothing as well.
BTW have you asked FXCM where you can actually physically place stop and limit orders...
I can put mine anywhere.
PS have you seen this http://www.spotontrading.co.uk/EURUSD.html
JonnyT
Still sticking to the futures. 2 pips (more if you count bucket shop bias) is one hell of a difference long term.
Like I've said today is the very first time I haven't had a fill on the EUR/USD in over 6 months of trading. I can deal with that.
Remember it cost me nothing as well.
BTW have you asked FXCM where you can actually physically place stop and limit orders...
I can put mine anywhere.
PS have you seen this http://www.spotontrading.co.uk/EURUSD.html
JonnyT
darktone
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jonny
ive said it before.. different tools for different situations. Just because it didnt cost you this time it doesnt mean your immune from being stuffed, a slip and a retrace (unless orders dont slip but get jumped of course) is all it would take to hurt at size.
you can get a stop in at 4 pips inc spread.
regards
dt
ive said it before.. different tools for different situations. Just because it didnt cost you this time it doesnt mean your immune from being stuffed, a slip and a retrace (unless orders dont slip but get jumped of course) is all it would take to hurt at size.
you can get a stop in at 4 pips inc spread.
regards
dt
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Darktone
Looks like youv'e just answered the question whilst I have been working it out.
The demo platform would seem to suggest stops/limits need to be min 5 pips away from market price. ie stop buy (or limit sell) must be at least 5 pips higher than current offer. This means you cant put them in between the spread obviously.
Still, not much of an issue really imo.
Are you another advocate of FXCM then?
Darren
Looks like youv'e just answered the question whilst I have been working it out.
The demo platform would seem to suggest stops/limits need to be min 5 pips away from market price. ie stop buy (or limit sell) must be at least 5 pips higher than current offer. This means you cant put them in between the spread obviously.
Still, not much of an issue really imo.
Are you another advocate of FXCM then?
Darren
Today was a very rare beast indeed. That should be remembered.darktone said:
Agreed I'm not immune, but I also cannot sit at a screen all day to use a platform like FXCM.
Even if I could I would still be trading Globex futures rather than FXCM et-al
JonnyT
I don't think todays market action could be described as rare. We have seen similar very volatile price action on a number of previous big news days. Today's action could be described as relatively docile compared to previous big news days in view of the fact that it went in just one direction today, rather than both!
This extreme volatilty allways seems to happen on big US news days and generally at 1.30pm UK time (which is obviously when the news is released). The ones I have noticed are Non farm payroll announcements.
Does anyone have a note of the days that these big announcements have happened over recent months. (and if it is just non farm payrolls or other data announcements that affect the price action severely).
I would like to look back at the price action from these days. Bearsing in mind the guaranteed stops being offered by FXCM, it may well be worth developing a strategy just for "big news" days.
This extreme volatilty allways seems to happen on big US news days and generally at 1.30pm UK time (which is obviously when the news is released). The ones I have noticed are Non farm payroll announcements.
Does anyone have a note of the days that these big announcements have happened over recent months. (and if it is just non farm payrolls or other data announcements that affect the price action severely).
I would like to look back at the price action from these days. Bearsing in mind the guaranteed stops being offered by FXCM, it may well be worth developing a strategy just for "big news" days.
Darren, I think there a few FXCM users among the T2W ranks, I use them along with one other broker, for intraday/swing plays. Although I choose not to take 'news' positions, I've (so far) had no problems with fills on any order type, night or day....until I do, I'll continue using em!.....I guess most providers get things wrong now & again, and of course there's no real "guarantees" as such with anything in this game, but as a service provider, I've found them ok up to press!
as Darktone say's 'horses for courses'.....
Non-Farms & FOMC are the main movers really....occasionally CPI/PPI might pitch the currencies if they come in 'unexpected'.....but rarely have too much effect imo.
as Darktone say's 'horses for courses'.....
Non-Farms & FOMC are the main movers really....occasionally CPI/PPI might pitch the currencies if they come in 'unexpected'.....but rarely have too much effect imo.
darrenf said:
Darren it was rare. The overall movement was normal for big news days, the gap in the futures hasn't previously happened in the last 6 months.
For instance it isn't uncommon for the market to move 100 pips up then move violently the other way. Normally it picks up limit and stop orders on the way. Today it didn't.
I will say no more on the subject other than if you trade you will know.
JonnyT
Well I do trade and I do know, having been on the nasty end of some of the big news days and yes having stops taken with it, fortunately(ish) only in one direction and not both at once though.
I don't trade futures as you will know so I accept your word that gaps in eur/usd futures are rare.
What I am trying to do is develop a safe way of exploiting these large moves. It seems fairly predictable that after a non farm payrolls announcement that the market will move a long way fast, whether one way or both.
Looking at todays price action, a simple breakout strategy would have netted 100+ pips, using a minimal stop loss. Doubtless the same could be said for previous big news days.
A guaranteed stop/ limit policy would allow this kind of move to be exploited safely would it not, whatever the tool used?
Such a strategy could be saved for "big news" days whilst using a normal strategy on any other days.
I would still appreciate it if anyone has a record of previous big news days so I can go back and look closely at the price action. I can look back at charts for the big spikes but I don't know what events these corresponded with at the moment.
JT, I don't want to argue about anything and I am not challenging your method of trading or saying futures are better/worse than any other trading tool available. Just trying to make a crust from the market and develop new strategies to exploit situations which seem to repeat on a consistent basis.
I don't trade futures as you will know so I accept your word that gaps in eur/usd futures are rare.
What I am trying to do is develop a safe way of exploiting these large moves. It seems fairly predictable that after a non farm payrolls announcement that the market will move a long way fast, whether one way or both.
Looking at todays price action, a simple breakout strategy would have netted 100+ pips, using a minimal stop loss. Doubtless the same could be said for previous big news days.
A guaranteed stop/ limit policy would allow this kind of move to be exploited safely would it not, whatever the tool used?
Such a strategy could be saved for "big news" days whilst using a normal strategy on any other days.
I would still appreciate it if anyone has a record of previous big news days so I can go back and look closely at the price action. I can look back at charts for the big spikes but I don't know what events these corresponded with at the moment.
JT, I don't want to argue about anything and I am not challenging your method of trading or saying futures are better/worse than any other trading tool available. Just trying to make a crust from the market and develop new strategies to exploit situations which seem to repeat on a consistent basis.
Hi darren,
I totally appreciate what you are trying to do.
Some of my systems trade the news in this way.
If you can get a guarenteed fill using an FX spot market maker then fine. But remeber you pay over the longer term with the spread and price movements.
Today was unusual for the futures market.
Connsider this.
Today the futures market system missed out on 100 points. The first time it didn't recieve a fill in 6 months.
Lets say 120 trades. However it has an advantage of 2 pips + per trade and can trade with a tighter stop.
Even using the best case scenario (for the FX Market Maker) over the 6 months the futures trades would still be 100+ pips better off.
Some of the strategies I use cannot be managed manually as you wouldn't be able to react fast enough aswell.
I'm happy with my tool(s)
Its a pity the wife doesn't agree.
JonnyT
I totally appreciate what you are trying to do.
Some of my systems trade the news in this way.
If you can get a guarenteed fill using an FX spot market maker then fine. But remeber you pay over the longer term with the spread and price movements.
Today was unusual for the futures market.
Connsider this.
Today the futures market system missed out on 100 points. The first time it didn't recieve a fill in 6 months.
Lets say 120 trades. However it has an advantage of 2 pips + per trade and can trade with a tighter stop.
Even using the best case scenario (for the FX Market Maker) over the 6 months the futures trades would still be 100+ pips better off.
Some of the strategies I use cannot be managed manually as you wouldn't be able to react fast enough aswell.
I'm happy with my tool(s)
Its a pity the wife doesn't agree.
JonnyT
JT
Just out of curiosity, when trading futures and the market jumps past a stop entry order as it did yesterday.........
if the market then comes back to your entry price, would you then be filled?
Clearly this did not happen today as the market just kept going in one direction for the rest of the day.
Darren
Just out of curiosity, when trading futures and the market jumps past a stop entry order as it did yesterday.........
if the market then comes back to your entry price, would you then be filled?
Clearly this did not happen today as the market just kept going in one direction for the rest of the day.
Darren
That is a good question.darrenf said:
The truth of the matter is I don't know for sure as it hasn't ever happened to me.
You are probably aware that on the EUR future I use a Stop Limit for entry with the Limit price 2 pips away. For exit I use a 5 pip differential.
My thought is that when the market zooms past the stop the Limit comes into action, so if the market retraced to below the limit (assuming a long entry) I would be filled.
I just hope days like yesterday continue to be very rare beasts.
What I will say about big move days is that a great strategy is to wait for the initial thrust to burn out, let the market pull back and consolidate then enter in the same direction. This is a very high probability trade. It normally gives an easy 40 pips+
A further entry can be made after the high of the initial thrust has been taken out.
JonnyT
