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Direct MessagesDate/Time: Tue, 07 May 2024 06:52:39 +0000
Attached stop order turns into stop limit order
View Count: 2047
| [2020-07-17 15:21:38] |
| User790545 - Posts: 41 |
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How do I get it so that the stop (stop loss at market) order is submitted instead of it changing into a stop limit order? When I choose stop limit in the "targets" tab, Stop: Stop disappears as an option. In the "trade orders" window, the initial child order shows up as a "stop" and then subsequently changes over to "stop limit" when the parent order is filled. |
| [2020-07-17 18:22:32] |
| ondafringe - Posts: 248 |
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See this: Order Types: Stop Orders on the CME |
| [2020-07-17 19:05:58] |
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Refer to the information here: Order Types: Stop Orders on the CME Sierra Chart Support - Engineering Level Your definitive source for support. Other responses are from users. Try to keep your questions brief and to the point. Be aware of support policy: https://www.sierrachart.com/index.php?l=PostingInformation.php#GeneralInformation For the most reliable, advanced, and zero cost futures order routing, *change* to the Teton service: Sierra Chart Teton Futures Order Routing |
| [2020-07-17 19:54:07] |
| User790545 - Posts: 41 |
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So when a stop is hit in the stop-limit order, an immediate normal market order behavior should be expected?
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| [2020-07-17 20:09:50] |
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Contact the exchange for further questions.
Sierra Chart Support - Engineering Level Your definitive source for support. Other responses are from users. Try to keep your questions brief and to the point. Be aware of support policy: https://www.sierrachart.com/index.php?l=PostingInformation.php#GeneralInformation For the most reliable, advanced, and zero cost futures order routing, *change* to the Teton service: Sierra Chart Teton Futures Order Routing |
| [2020-07-17 22:20:06] |
| User790545 - Posts: 41 |
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No need for an exact answer from the exchange. I'm fine with hearing of any experiences from SC users here on the board.
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| [2020-07-18 01:52:47] |
| ondafringe - Posts: 248 |
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Based on my understanding: If you're trading CME or ICE products, you need to be aware of the "Stop with Protection" Rule. For CME, trading ES/MES, the exchange adds a Stop-Limit order 3 points out from your normal Stop. Your normal Stop functions as expected; however, in a fast moving market, or a sudden, multi-point gap against your position that jumps, or blows through, your normal Stop... AND also jumps, blows through, the CME's Stop-Limit.. you may NOT be Stopped out of your trade at all. Should that happen, the Stop-Limit becomes a Buy (or Sell)-Limit 3 points out from where your normal Stop was placed. If the market bounces back quickly, once the price recovers to the Buy (or Sell)-Limit mark, you will then be Stopped out of your position and will suffer an additional 3 points of loss on top of what you would have lost based on your normal Stop... unless you cancel the Buy (or Sell)-Limit order before it is hit, and thereby remain in your position as though nothing had happened (double-check me on that). However, if the market does not bounce back immediately, you will still have an open position. And if the market continues to run against you, you will continue to accumulate additional losses well beyond where your normal Stop had been placed. Therefore it is IMPERATIVE for you to monitor your position closely ESPECIALLY during times of extreme volatility and/or very low liquidity (like overnight) because those are the times when this scenario could easily occur. Should this scenario occur, you will have to decide whether to wait it out in hopes the market recovers to near the Buy (or Sell)-Limit price, where you would then have the option to cancel the Bur (or Sell)-Limit order and remain in the position like nothing happened... or if you don't think the market will recover, manually close your position and take the extreme loss. During normal market hours, the odds of the above scenario happening are greatly reduced, but not eliminated, and your normal Stop would probably function as expected. Hopefully, I didn't garble all that up! :) Date Time Of Last Edit: 2020-07-18 02:01:06
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| [2020-07-18 02:07:46] |
| ondafringe - Posts: 248 |
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After typing all that up, I found the bookmark I knew I had hidden somewhere: https://www.cmegroup.com/education/protection-functionality-for-market-and-stop-orders.html |
| [2020-07-22 01:38:36] |
| User790545 - Posts: 41 |
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Thanks, ondafringe! After watching the video, at 5:04, it looks like the CME distinguishes between two orders, a stop limit and a stop order with protection. How do we use the stop order with protection in Sierra? The stop limit doesn't seem to stop you out at your stop price (with a market order) but rather at the limit price which is set - in my case for MGCQ20, it was 4 ticks and in another case, it was 5 points! A stop order with protection will do as you mention above, a market order that sweeps the book until it hits the protection price and then a limit price is set for the rest of the unfilled order. |
 stop-order-vs-stop-limit.PNG / V - Attached On 2020-07-22 01:37:07 UTC - Size: 126.28 KB - 331 views |
| [2020-07-22 02:42:05] |
| ondafringe - Posts: 248 |
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I only became aware of this about a month ago. So, again, this is my understanding of how the Stop w/Protection works: Simply stated: As far as I can tell, it's all automatic. The exchange does it for you, like it or not. So there is nothing to set in SC, other than your resting Stop. Meaning: When you set a resting Stop... the exchange automatically adds/subtracts the Protection Points for that product... and then sets a Stop-Limit order at the Protection Point price. When the resting Stop is triggered... it becomes a Market order... and the Stop-Limit becomes a Limit order. So for ES/MES, if you had a Buy Stop set at 3200, the exchange would automatically add 3 points to the resting Stop price, and automatically set a Buy Stop-Limit order at 3203. If your resting Stop is triggered... and you aren't filled within those 3 points, you will not be Stopped Out of your position. Protection Points are determined by the exchange based on the product you trade. As for CME, Protection Points are equal to 1/2 the non-reviewable trading range for that particular product. So for ES/MES, the non-reviewable trading range is 6 points, so the Protection Points would equal 3 points. You'll have to look around on the exchange to determine the Protection Points for the product you trade. Date Time Of Last Edit: 2020-07-22 03:50:14
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| [2020-10-13 01:16:37] |
| User790545 - Posts: 41 |
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If your resting Stop is triggered... and you aren't filled within those 3 points, you will not be Stopped Out of your position.
I understand this now, thanks! I verified on a recent trade of M6E that for a stop loss of 1.182, once executed, the stop limit "price" was 1.182 and "price 2" was 1.184. Once the stop was hit, a market order occurred and the system got me out at 1.182 (where my original stop was). Date Time Of Last Edit: 2020-10-13 01:17:16
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| [2020-10-13 15:19:53] |
| ondafringe - Posts: 248 |
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Glad you got it figured out. :)
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