MinStopDistance higher in the night?

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Viewing 11 posts - 1 through 11 (of 11 total)
  • 04/16/2018 at 10:39 AM #68456
    Despair

    That IG increases the MinStopDistance in the case of high expected volatility is a known fact but I wonder if it is also true that they increase it during the night (like the spread). For example both Dax and CAC have usually a MinStopDistance of 4 points but it happens for me pretty regularly that a daily strategy of mine (like all daily strategies trading in the middle of the night) was stopped because it tried to lay an order too close to the actual market level and then the MinStopDistance is stated with being 10 points.

    This happened several times (for example last night for the Dax) and not only in situations of high volatility.

    04/16/2018 at 11:34 AM #68475
    GraHal
    Despair wrote:

    I wonder if it is also true that they increase it during the night

    You’ve kinda answered your own question with the evidence you mention (10 points night vs 4 points day min stop)?

    I often do that … ask a question (especially a written out question) and the answer pops out at me! 🙂

    Lots of folks seem to go through life never questioning anything??

     

    04/16/2018 at 11:52 AM #68480
    Despair

    I verbalized a suspicion but would be grateful to get confirmation. 🙂

    I once tried to ask this somebody working at IG but got the answer that it depended on volatility and NOT that it was because it was during night time. But since I get this error so frequently I started doubting the answer I received.

    04/16/2018 at 7:45 PM #68520
    Despair

    I now got answer from IG and I was right. During the night they increase the minstopdistance. :-S

    04/16/2018 at 8:35 PM #68532
    Vonasi
    Despair wrote:

    I now got answer from IG and I was right. During the night they increase the minstopdistance. :-S

    So if anyone has a strategy that holds overnight with a varying stop do they need to code in either a larger overall minimum stop distance or change the stop and minimum stop distance dependent on time? I’m pretty sure we have a discussion somewhere on here about minimum stop distances and orders too close just being rejected but what if you already have an order on the market and the minimum stop distance is then increased?

    04/16/2018 at 10:24 PM #68537
    Despair

    The min stop distance only affects new orders. I have for example strategies that enter the market on a stop order if certain conditions are true. Those strategies run on daily bars, so the always trade in the middle of the night. I often had the problem that my strategy was stopped because it tried to place an order too close to the market. Now the reason is found and I can adapt my strategies accordingly. 🙂

    04/17/2018 at 7:28 AM #68560
    Leo

    I have the same problems, but how much should be the difference between the order and the market? Pips 2 time spread? Just an order of magnitude will be enough for me. Thanks in advance.

    04/17/2018 at 7:41 AM #68562
    Vonasi

     

    Despair wrote:

    Now the reason is found and I can adapt my strategies accordingly.

    … and so that means not buying or selling at the desired price but a worse price which means the strategy may not be as profitable as first thought.  Multi time frame can’t arrive soon enough for me as it will be great to always enter the market when we know what the spread is and the minimum stop distance is rather than have to guess.

    We can easily see what the spread is when markets are closed on our platforms but the minimum stop distance is a missing part of the jigsaw that IG seem to like to keep a secret!

    04/17/2018 at 9:41 AM #68572
    Despair

    According to IG this “night minstopdistance” is nowhere on there website and the only way to find out is to ask them. I already got the distances for some underlyings. I will complete the list when I got more:

    Dax  10

    Russel 2

    STXE 6

    AEX 1


    @Vonasi    : Of course you are right, that means entering the trade at a less favorable position. Overall this is a real problem when trading on daily bars. It sucks big time that you can’t influence when during the day the strategy is trading. So it is always trading in the night session which automatically means a much wider spread (for example for Dax the spread is 5 during the night while only 1 during the main session) and this increased minstopdistance. So I agree it is not so nice that this is happening but I prefer to be able to set a stop order at the correct distance over the strategy being stopped and in this way not being in the trade at all. This makes me suffer too much “opportunity cost”. Besides this strategies on daily bars are usually little longer in the trades anyway, so a few points usually don’t make the trade a loser.


    @Leo    : I think it is approximately double as wide as during the day session. BTW this happens only for underlyings that have a night session. For example chicago wheat is not trading during the night so there is no increment happening.

    04/17/2018 at 11:01 AM #68579
    Vonasi
    Despair wrote:

    so a few points usually don’t make the trade a loser

    Yes but I’d rather have those few points on my side of the deal rather than on theirs! It is a tough enough game we are playing without making it unnecessarily more difficult to win.

    04/17/2018 at 11:04 AM #68580
    Despair

    Of course, every point counts but it is not up to us to make the rules, we just can adapt.

    Here come 3 more underlyings I asked for and want to share:

    OMX  3

    FTSE  8

    CAC  8

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