GUARANTEED STOP IN VOLATILE MARKET

• 04/20/2020 at 5:06 PM #127111
  steynpj

  I recently made big loss in volatile market.

  Automated system EUR/USD had guaranteed  stop of 30 points, which is more than minimum for guaranteed stop.

  Market was very volatile. Minimum guaranteed stop increased to hundreds of points. Automated trade was still placed with this increased stop, against my instructions.

  Is this preventable.

   

  

  steynpj

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  04/20/2020 at 5:29 PM #127113
  GraHal

  steynpj wrote:

  Automated trade was still placed with this increased stop

  I sympathise with your Loss, the more so as it was a big Loss!

  I think you would have to post your code here so the experts can take a look?

  Whenever I / we try to take a trade with a Stop Loss at less than minimum then the Order gets Rejected 12 times then System is stopped altogether!

  Did you have the settings box ticked to say … Close any Trades if System is Stopped!?

  Is it in the Terms and Conditions for Guaranteed Stop Accounts that you have to accept whatever your broker determines is the minimum??

  If Yes, then there does not seem much point in having a  Guaranteed Stop Account

  

  GraHal

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  04/21/2020 at 8:51 AM #127181
  Nicolas

  The automated system has increased the distance to the stop because the broker asked for it, it’s define in the communication protocol between IG and the platform. Ask IG why they did that without a warning message. As GraHal said, look for your broker T&C about guaranteed stops.

  

  Nicolas

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  04/27/2020 at 7:10 PM #128491
  swedshare

  steynpj wrote:

  Automated trade was still placed with this increased stop, against my instructions. Is this preventable.

  It’s a relevant question. Is there a way we can prevent orders being executed in PRT when IG doesn’t respect the stoploss in the strategy? I did read the terms and it basically says that IG can do what ever they want. Even a guaranteed stop can be adjusted by IG to prevent them from taking the loss. Not sure why they even offer that service when it’s basically an insurance that doesn’t insure anything.

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  GraHal

  

  swedshare

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  05/01/2020 at 1:11 PM #129201
  steynpj

  IG know they are wrong.

  Did offer me compensation as gesture of goodwill. Not the lost amount of course.

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  GraHal

  

  steynpj

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  05/01/2020 at 1:50 PM #129215
  GraHal

  @steynpj … did you find an email (that you missed? ) where IG warned you that Guaranteed Stop Loss minimum was increased from x date??

  

  GraHal

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  05/01/2020 at 8:15 PM #129308
  steynpj

  Do not remember. Was month or two ago. Principle remains the same. If you trade an automatic system, IG should not place trades if not adhering to system parameters.

  

  steynpj

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  05/01/2020 at 9:42 PM #129319
  GraHal

  I agree!

  I still can’t get my head around how technically (codewise) IG can vary the stop value within the code.

  

  GraHal

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  05/01/2020 at 11:36 PM #129333
  steynpj

  They did extensive enquiry, and as noted paid goodwill.

  My guaranteed stop was 10 or mostly 15 pips on EUR/USD, that was my system.

  IG placed trade stop loss  in multiples of hundreds.

  If you trade big money, that is a serious problem.

  

  steynpj

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  05/01/2020 at 11:39 PM #129334
  steynpj

  In first post I said stop 30, last post 15. No mistake, not more than 30

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  GraHal

  

  steynpj

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  02/17/2021 at 12:14 AM #161735
  XORANDNOT

  There is a way to prevent such huge losses most of the time (at least in lower time frames), when guaranteed stops are used and the minimum stop distance is increased by IG. I always include the following in my systems to prevent such things :

  Supposed, you set a stop loss of 40 points by using

  set stop ploss 40

  1	set stop ploss 40

  Now, I always check, whether the stop loss has been triggered in the last bar, but the position is still open for whatever reason :

  If longonmarket and positionprice - low >= 40 + spread then sell at market endif

  1 2 3

  If longonmarket and positionprice - low >= 40 + spread then sell at market endif

  and similar for short positions. If the original stop loss has been triggered during the last bar, but the position is still open, it will be closed in any case by a market order.

  This way you can avoid huge losses, for example when IG increases the minimum stop distance to 300 points and you don’t notice that. When you work on larger time scales, you could use a multi timeframe technique by checking for example every 10 seconds whether a stop has been triggered, but the position is still open. Most huge losses can be enormously diminished this way, I think.

   

   

  

  XORANDNOT

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