Forex Signal (Tuesday August 9, 2011 - 4:30am EDT NY Time EDT) - UK Man. Production

[unkle]

Boko Maru

hello again
i have make some research
i find something like stop-limit orders
on aplari direct (currenex) and on MB trading desktop pro platform

quote from mtb

Stop Limit (Forex and Equities)
Works like a Stop Market order with one major exception. Once the order is activated (by the price reaching or passing the stop price), it does not become a market order. Instead, it becomes a limit order with a specified price. The advantage of this order is that you set a specified price at which your order can be filled. The disadvantage is that your order may not be filled.

quote from alpari

Stop Limit Orders

Combine the features of a stop order and a limit order. Once the stop rate is reached, the stop-limit order becomes a limit order to buy (or to sell) at no more (or less) than a specified rate. As with all limit orders, a stop-limit order may never get filled if the rate never reaches the specified limit rate. The Stop-Limit order will consist of the following pieces of information:
Currency pair, and
Direction (buy or sell)
Currency Amount
Dealt currency
Stop “Trigger” rate
Bid or Offer Trigger
Limit rate
Expiry type (valid for only GTC, Timed, or Customer Defined)


Example: The primary benefit of a stop-limit order is that the trader has precise control over where the order should be filled. The downside, as with all limit orders, is that the trade is not guaranteed to be executed if the order does not reach the limit rate. A stop limit order is an order that becomes marketable once a set “trigger” rate has been reached, and is then submitted to the market at a “limit” rate. For example, let's assume that EUR/USD is trading at 1.2040 and a trader has put in a stop-limit order to buy with the stop “trigger” rate at 1.2045 and the “limit” rate at 1.2046. If the rate of EUR/USD touches the 1.2045 stop “trigger” rate, the order is activated and turns into a limit order to buy at 1.2046. As long as the order can be filled at or below 1.2046 (the limit rate), then the trade will be filled. If EUR/USD gaps up above 1.2046, the order will not be filled.

and the picture of how to place that kind of order

IF this is the same solution that You were talking about ?
is this is that soft limit orders ?

if so this only allow us to control the slippage on our stop orders
but on many ecn platforms You can set maximal slippage for stop orders (for example jforex - dukascopy)
so that solution is not very helpful for spike trading because we can not predict how big will be the slippage and we more often won't fill in with our orders and we loose opportunity to make profit with that kind of news trading method

if that kind of orders that i have found is not the same that You are talking about there is still hope for us

 

[Boko Maru]

For Unckle

NO!!!

You are still trying to make this be a stop order. It is not a stop order. Not a stop-limit order, not any kind of stop order. It is a simple LIMIT order. The only difference is you are setting a buy limit price ABOVE current price and a sell limit BELOW. Other than that it's exactly the same as any limit order.

It looks like you have a Currenex demo right? Then do this. Open an order window for a simple limit order (let's say buy limit) just like you normally would. Only this time, set the limit price 10 pips ABOVE the current market price. Then press "buy."

What happens? Your order gets executed right away, at the current market price. Correct?

So what are you telling your broker when you place this order? Let's (again) use the example I gave. Price is 50. You set a "soft limit" buy order at 60. You are saying to your broker: "I want to buy at 50, but will take an entry up to 60, but no higher than 60." So, as long as price is below 60, you get filled right away. Get it? Will you get filled higher than 60? NO, you will not. Slippage control, remember?

So, why do we want to do this? Again it's all about slippage control. You will NOT get executed any worse than your limit price in this example, so yes you can control slippage perfectly. In above example, you get executed right away as it's not at news. But at news when price zooms away, this ensures you will either get a fill within your limits, or you won't get filled at all.

 

[Stavro D'Amore]

Hi I use an ECN broker who allows me to enter on limit orders so i set my limit orders 7 pips away from current prices.

Yes thats correct.

 

[Simon Edwards]

Boko Maru

hello again
i have make some research
i find something like stop-limit orders
on aplari direct (currenex) and on MB trading desktop pro platform

quote from mtb




quote from alpari


and the picture of how to place that kind of order

IF this is the same solution that You were talking about ?
is this is that soft limit orders ?

if so this only allow us to control the slippage on our stop orders
but on many ecn platforms You can set maximal slippage for stop orders (for example jforex - dukascopy)
so that solution is not very helpful for spike trading because we can not predict how big will be the slippage and we more often won't fill in with our orders and we loose opportunity to make profit with that kind of news trading method

if that kind of orders that i have found is not the same that You are talking about there is still hope for us

One warning about MBTrading , whilst they seem like a pretty good broker , the time it takes to get filled on news releases SUCKS.

on avg i was waiting about 50 seconds to get filled until i stopped using them for news trading