I am developing a new strategy and went on on a pending order yesterday which got filled as hoped, held all night and then stopped out this morning. As far as I can tell, the price was never really at a level I woud call this a “Fair” stop.
That is the second time this has happened in a week. I am now back in, but the loss is locked in and can never be recovered.
I am going out atm and will continue later, but could people check the actual low recorded on their systems at this time please ?
When I went back in, the broker was showing a 9 pip spread, although they claim 1-2 pips as “Normal spread”.
Fortunately, this is a new system I am trying out and it was a demo account (different broker) but I calculate my stops. So it has no real financial effect, although it is having a seriously detrimental effect on my recorded “profit loss”. Thus it distorts my records.
What allowance for “The grasping hand” do others make for the spread ?
[Edit - it is now 11:10 GmT , so it may yet make a lower low, but that should help people to decide “Which low” I am speaking of if it does. ]
Thanks for that @tommor, I was using iqoption for this testing (You can “Demo” without “Validation” ) and they are currently showing a difference between bid/ask at 0.00085 !
It seems to be getting wider week by week. - Yet when I set the “pending” it was around 3.5. pips which I can live with and that was a part of my assessmant.
1.2 pips is pure luxury ! - In my case it would have represented a bet now returning towards a profit instead of a locked in LOSS !
(I don’t like to “Test” on a “real” broker, since I am a bit anal about not letting “the oposition” see my strategy in detail.)
I know when I used to spreadbet with Cantor Index (they seem to have disappeared now) the spread on Dow Futures was around 14 pips at the start of the instrument and narrowed to around 9 as in came to expiry. SOmetimes when “IT” was moving well, the spreads used to move so that the whole spread was in “front” of the movement. - At £3 to £5 a pip that could be a consideration, but at least we were aware of it !
It is very annoying though to have two decent size “Losers” (well 4 actually - because both this bet and the previous one were both “double size” - All stopped out when the price never got closer than 3 or so pips away.
Has to be "Thumbs down " for trading with iqoption though !
that corresponds more to the levels others are noting.
I would have been fairly stopped out at 15:20 anyhow, so I feel a little less aggrieved about that now especially since my re-entry allowed me to reset the stop level, so the “retest” didn’t get me - and I’m a whisker from break-even now, but we’ll see whether their greed turned round and bit them in the “asp”.
Does show the importance of making the effort to trade a “good broker” though.
[Edit - the buggers are banging it down again - I reckon they want to test 1.3700 - wondering whether it’s worth a short ? ]
[Edit 2 - Interesting “Short interest” is 46% according to IG - whereas EURUSD is 57% - I wonder why that much divergence ? ]
It may be a problem with your broker. Find a broker that doesn’t widen spreads very often. I have one more question. Wasn’t it too much risky to put stop loss at 1.3723. Well I understand everyone has his own trading strategy. But what I feel it wasn’t a good place for stop loss.
It is good that you have looked up the trade and worked our where a stop should be placed
If you go back and look again at the price action siince I got stopped out, You can see that the price would eventually have stopped me out in any case a few hours later. But Note that I wouldn’t have been stopped out by much (I believe it went down to 3713 without looking it up again) - ie I would have been stopped out by 13 pips ! - So to me it says my expectation of price action was “In the right ball park”. - I am pleased with that so far.
I am interested to know though - where would you have put stop ? for an up bet with entry at 1.3768, on 28.02.2017 at around 20;03 (8.03 pm) ? (GMT Times)
As I said in the thread, the strategy is new(ish) and intended to catch a large(ish) upside move,
The stop was intended to allow “wriggle room” within and just beyond, the most recent price action.
There were better places to set the stop I agree - but the logical ones were hundreds of piips away - in the low 1.3300 s. That would have required way too large a risk profile and without the neccessary “Reward” ratio if I reduced the bet size to a tiny amount. It was as a defence against a move to retest these levels that the stop was placed.
Was it the best place ? Clearly not. lol.
My re-entry, when I realised I had been stopped out was at 1.3742, since that was a Market entry. The re-entry though allowed me to reset my stop and I did so, takig into account the “magnet effect” of the “round number”, so my new stop is in the !.3600s. That would have been a better place to put my original stop in fact and would only have needed a 100 pip stop or thereabouts, so I suppose I was being a bit “Greedy” with respect to the stop placement element of (risk).
My assessment was - that I wouldn’t need all of that and thus I could trade (and lose as it turned out) a larger size bet.
So I would really like to hear where you would have placed a stop and why ? (Assuming you have taken the bet in the first place of course - lol )
Both trades now closed Aronund 12:45 13.03.2018 - One around 180 pips, the other around 215 - On the enormous move due to Philip Hammond Statement. The size of the moves and the immense retail volume, make me expect a “Rationalisation to come” - so I’ll grab the pips while I still can.
The TP was only a "guesstimate in any case and the second one got to it, but didn’t get triggered - I’ve played that game before !
