Risk off avoid gap weekends & readjusted stops

• 02/28/2021 at 4:35 AM #162732
  Machinelearning122

  I run som automated strategies and I have always been scared of weekend gaps. Pure hypotetical.. Lets say I have a short or long position with a stoploss with 100 points away. And it gaps in the wrong way over the weekend 1000 points. That means I would just go bankrupt. Is there a profitable way to avoid this type of risk? Is garaunteed stops in proorder possible for only weekends (I have NEVER undderstood the cost of a garaunteed stop)? Or would it be better for example to atleast code in to not take a trade after 21.58 friday and exit if position have latent gain on 21.59 friday? Or just exit trade 21.59 even of latent gain/loss.

  And btw.. Can ig increase minimum stop distance for example to 300 points? And if I run a system with readjust stops. Will it be a loss of 300 points then if my system want for example to set stoploss to breakeven? If yes.. Would it not just be better to run the system without readjusted stops and let the system stop after failed to change stoploss 12 times and just exit the trade?

  Thank you guys

  

  Machinelearning122

  Participant

  Topics: 2

  Replies: 3

  Been thanked: 0 times
  02/28/2021 at 8:21 AM #162735
  robertogozzi

  Guaranteed stops can only be selected when a strategy is started in autotrading and don’t expire until it is shut down.

  There’s no weekend option.

  You pay the extra cost, to be checked with IG, only when your SL is hit. If it isn’t you do not pay anything more than common spread/commissions.

   

  

  robertogozzi

  Moderator

  Topics: 69

  Replies: 16584

  Been thanked: 3705 times
  02/28/2021 at 8:31 AM #162738
  Machinelearning122

  Yeah I thought so too.

  Well thats the thing that will be extra cost every time it hits stoploss. And that is just a waste of extra cost each time when it is only neccesary on weekend gaps.

  Thanks for answering that part of the question.

  

  Machinelearning122

  Participant

  Topics: 2

  Replies: 3

  Been thanked: 0 times
  02/28/2021 at 9:41 AM #162748
  Machinelearning122

  If DayOfWeek = 5 AND time >= 215600 THEN Tradingon = 0 Endif if opendayofweek = 5 and openhour >= 21 and openminute >= 56 and positionperf >= 0 then sig=1 else sig=0 endif IF sig=1 THEN SELL AT MARKET EXITSHORT AT MARKET ENDIF

  1 2 3 4 5 6 7 8 9 10 11 12 13 14

  If DayOfWeek = 5 AND time >= 215600 THEN Tradingon = 0 Endif   if opendayofweek = 5 and openhour >= 21 and openminute >= 56 and positionperf >= 0 then sig=1 else sig=0 endif IF sig=1 THEN SELL AT MARKET EXITSHORT AT MARKET ENDIF

  Well I tried this in my strategies, seems like all turned out to be much worse exiting before weekends.

  Why would not IG just not make gstops available on weekends to avoid the big gap going passed your stop loss?

  I guess gaps over 2% are very uncommon and I guess one or two positon would not be that harsh and would not make the bank to 0 atleast..

  

  Machinelearning122

  Participant

  Topics: 2

  Replies: 3

  Been thanked: 0 times
  02/28/2021 at 9:42 AM #162749
  Machinelearning122

  Can someone please answer this part so it does not get forgotten “Can ig increase minimum stop distance for example to 300 points? And if I run a system with readjust stops. Will it be a loss of 300 points then if my system want for example to set stoploss to breakeven? If yes.. Would it not just be better to run the system without readjusted stops and let the system stop after failed to change stoploss 12 times and just exit the trade?”

  

  Machinelearning122

  Participant

  Topics: 2

  Replies: 3

  Been thanked: 0 times
  03/01/2021 at 11:04 AM #162831
  Nicolas

  IG can increase the stopsize if you allow them by checking the box when you launch a strategy into ProOrder.

  Machinelearning122 wrote:

  Would it not just be better to run the system without readjusted stops and let the system stop after failed to change stoploss 12 times and just exit the trade?”

  that’s an idea.

  

  Nicolas

  Keymaster

  Topics: 81

  Replies: 20838

  Been thanked: 4749 times
• Author
  Posts