Oanda huge slippage @ 13:30

[apmf]

Recently got stopped out because of the huge slippage in GBP/CHF pair.
After the news annoucement the inside bar @10 am one and the follwing squeeze IB's broke north hitting my buy order @ 1.7840 and suddenly there was a huge spike down only in my Oanda back till 1.7786 taking my stop order which I had kept @ 1.7790.

Considering the news flow I can agree with the spread cost going to 15 pips but honestly this much slippage huh!
What do you guys do in this situation, I mean where do u leave your stops or should I just forget about the stops for that moment and trade the flow direction.
Now I am thinking why did I not just stepped aside and watch the new reaction before jumping in..my bad!
Any comments?

 

[GammaJammer]

I thinkmit really was there, but not by much and not for long. You can maybe consider yourself slightly unlucky.

Bottom line is what you do depends on the circumstances. You can always have a 'disaster stop' a bit lower, and manage your actual stop yourself if you feel more confortable that way.

Or you could always just have no stop placed in the market and keep a mental one if your discipline is up to it....

Main thins around days like NFP day I'd say is actually have a plan rather than having a random punt. ON what basis did you decide to be long gbpchf at that point? Be honest with yourself.

 

[apmf]

I thinkmit really was there, but not by much and not for long. You can maybe consider yourself slightly unlucky.

Bottom line is what you do depends on the circumstances. You can always have a 'disaster stop' a bit lower, and manage your actual stop yourself if you feel more confortable that way.

Or you could always just have no stop placed in the market and keep a mental one if your discipline is up to it....

Main thins around days like NFP day I'd say is actually have a plan rather than having a random punt. ON what basis did you decide to be long gbpchf at that point? Be honest with yourself.

Thanks for your reply GJ.
I dont trade news basically and neither do I have a proper newfeed, rely on delayed feeds from Ransquawk. I trade what I see and in this case I saw a Inside bar @10 am and was looking to buy if it breaks on the upside as prices has touched a support @ 1.7800 zone and looking for a retracement .Or to sell if there is a breakout below the support and which could be few pips below the 10 am IB.
When I read the news release I didn't know how to react but just to leave my stops for my triggered buy position @ 1.7795.
Anyway was a good lesson to learn and I will try and keep mental stops from next time. I admit I didn't plan beforehand about the news release and even though I would have done it still would have being stopped out.. never thought of mental stops during major news release.
Thanks once gain

 

[NetTecture]

You should trade news as in avoid them.

No need to have a feed.... get the news calendar and just be aware when important numbers are out.

This morning was a hugh announcement (unemployment numbers)... naturally this can cause trouble.

 

[apmf]

You should trade news as in avoid them.

No need to have a feed.... get the news calendar and just be aware when important numbers are out.

This morning was a hugh announcement (unemployment numbers)... naturally this can cause trouble.

Totally agree, So you dont bother trading during the news annoucement? I think there is a huge chances of missing out on a major move so I will try sticking with mental stoploss.
Thanks anyway.

 

[NetTecture]

I do not only not trade, I normally make sure I am flat.

PRoblem is - you often, depending on market, get hugh swings in BOTH directions before the market settles in one.

 

[shadowninja]

missing out

This is your problem.

I was watching GBP/USD on Alpari and it was a a tad volatile. It flew down to my stop and took me out. Surprisingly, despite my trade being on IG, it took me out exactly at the stop (non-GSL) even though IG paused at one price for a good 2-3 seconds. I was expecting to experienced something similar to the experiences described on another thread but knowing I had non-GSL, was happy to accept that **** happens.

And that is the thing... **** happens, accept it. If you think you have an edge, then you can continue to trade despite 7/7, 9/11 etc.

As stated above, you could just avoid trading during the news.

 

[apmf]

This is your problem.

I was watching GBP/USD on Alpari and it was a a tad volatile. It flew down to my stop and took me out. Surprisingly, despite my trade being on IG, it took me out exactly at the stop (non-GSL) even though IG paused at one price for a good 2-3 seconds. I was expecting to experienced something similar to the experiences described on another thread but knowing I had non-GSL, was happy to accept that **** happens.

And that is the thing... **** happens, accept it. If you think you have an edge, then you can continue to trade despite 7/7, 9/11 etc.

As stated above, you could just avoid trading during the news.

Darren, I dont know if missing out a trade is my problem because honestly I didn't felt anything about my loss but will accept that I did thought for once atleast that I could have avoided this . Leaving a wide stop might have saved me this time but might have still be a disaster other times which I am not sure of.
I dont trade anything below 1hr prefer 4hrly. But agree with your point on accepting these losses as a part of doing this businesss. As I am trading a discretionary system based on priceaction, I have lot of room for improvement in my discretionary part.

Btw how does US economic news affected GBP/CHF pair?
Can anyone plz recommend me a book on news interpretation for forex? Just curious to know how fundamentals affect the forex market.
Cheers!

 

[N Rothschild]

remember the main liquidity providers usually pull liquidity right at the release of economic data!

 

[GammaJammer]

Btw how does US economic news affected GBP/CHF pair?

Cheers!

As the US economy is one of the chief 'engines' of world trade, reports about the state of it's health (or otherwise) affect the financial markets' general appetite for 'risk'. Risk is reflected in FX in terms of positions that stray away from the traditional 'safe haven' currencies, which, traditionally have been currencies such as the dollar , swiss franc and yen. Partly for reasons of stability, partly because they are relatively low yielding compared to 'risk' currencies. So currency pairs like gbp/chf move partly based on global risk appetite (as, when people are in risk seeking mode they will tend to buy the riskier currency and sell the safer one in search of positive return and often positive carry).

Grossly oversimplified worldview, but necessary imho in order to answer the above question. Many many other factors come into play, but in a nutshell, risk is the word.

 

[apmf]

As the US economy is one of the chief 'engines' of world trade, reports about the state of it's health (or otherwise) affect the financial markets' general appetite for 'risk'. Risk is reflected in FX in terms of positions that stray away from the traditional 'safe haven' currencies, which, traditionally have been currencies such as the dollar , swiss franc and yen. Partly for reasons of stability, partly because they are relatively low yielding compared to 'risk' currencies. So currency pairs like gbp/chf move partly based on global risk appetite (as, when people are in risk seeking mode they will tend to buy the riskier currency and sell the safer one in search of positive return and often positive carry).

Grossly oversimplified worldview, but necessary imho in order to answer the above question. Many many other factors come into play, but in a nutshell, risk is the word.

Thanks GJ, didn't know chf was considered safe heaven. Can you recommend me a book or a good read where in I can get all these information mainly about forex?

 

[shadowninja]

That investopedia website (I think it's called that) covers currencies and how they work IIRC.

 

[GammaJammer]

Thanks GJ, didn't know chf was considered safe heaven. Can you recommend me a book or a good read where in I can get all these information mainly about forex?

safe HAVEN, not heaven.

 

[apmf]

safe HAVEN, not heaven.

Oh I was wrong.Thanks for correcting me.

 

[apmf]

That investopedia website (I think it's called that) covers currencies and how they work IIRC.

Thanks! will have a look.