Thanks for the video. I've been trading for 2.5 years and hadn't heard of a couple of these methods. Here's one way I've been working on using automation: I'd noticed on some big news events you get a quick move in one direction or the other (A la CPI) but on the FED days, which are kind of initially ambiguous announcements, you get a rip in one direction and then a flush/trend in the other direction. I've been working on a play that captures one or both moves utilizing a buy-stop and sell-stop above and below the pre-announcement range. This last FED-day I was trading the USD/JPY (which I've been trading a lot in the past 5-6 months) with 200-tick targets and 100-tick stops (in both directions; relatively small size to get a feel in real time). In about 15 seconds the long got filled/stopped out and the short got filled and hit the target. It was a winner, but, in my review I noted I could've dropped the stops to 75-80 ticks to improve the R/R; and could've eliminated the target orders to capture a bigger chunk of the *real move by getting flat manually.
I am so impressed with this channel and your prop trading firm. The level of training, education and support you provide your traders is amazing. Top level, elite!
When i was reading Mike's book and he said you need to have hotkeys, i stopped at that moment and went to go enable them. Thank you guys. The TWAP part was most insightful for me thanks
Thank you for sharing these great tips - I’ve increased my successes thanks to specifying aggressive limit orders on specific setups that I’ve observed moved away from my passive orders too quickly - this video absolutely hits home for me. You guys are the best!
Informative. I dont even know where to look to begin figuring out how I would go about executing trades based on a TWAP order execution strategy. I use think or swim.
There's not a specific "TWAP", but here's how I'd do it: Right click on chart and hit "Buy" to bring up order; Click "Edit". From here you can go to "Advanced Order" and choose "1st Triggers Sequence". Say you want to buy 4 orders of 25 shares (total 100) @ $50.50 or less; set up the first limit order then right click the order and select "Create Duplicate Order" 3 times. Now, toward the right side of each individual order is a "settings wheel". When you click that the 2nd group is called "Conditions", where you can set a specific time for the order to be submitted (set each order X minutes apart). There's also a spot for "submit when this condition is met", where you can put in a study; If you know how to use ThinkScript you might be able create a "timer" there (that's above my pay-grade)...This seems tedious in writing but after practicing in "On Demand" or demo a few times you'd be able to do it fairly quickly...Now that I've been explaining it I think this could also be a good way to add to swing positions on pullbacks. I.e. Your initial order is a break of previous day's high, 2nd order a stop, 5-minutes later a 2nd buy-limit order goes in for if there's a near test of that previous high, 4th order a stop for that one. Something to play with for sure, especially if you're managing multiple stocks at once. tlc.thinkorswim.com/center/howToTos/thinkManual/Trade/Order-Entry-Tools/Order-Types
@@smbcapital You're welcome. Going through the process on the platform actually helped me learn a thing or two about customizable orders on ToS. Some of it I don't think I'd ever use, like a condition for order entry being based on a Correlation Study...but you can use conditions based on just about any study; From a simple MA or BollingerBand cross to maybe having a basket of stocks trigger when the NYSE advance/decline goes positive. So many more ways to use automation than I'd thought of before.
2 great traders.I would also execute a Limit on the offer it just takes away from thinking through an extra step.Any real trader will know there was a small debate at the beginning lol love it.Both correct I guess its based on comfortability,but I would definitely limit on the offer for my trading style at least.Great job guys 💪🏾
Jeff, I learned an important thing from you. To see trend at least one min chart go up 5 more min. I try to ignore the situations not doing that. Avoided into wrong trades.
Great information on different order types learnt heaps! Loved the Basket Order in relation to correlating stocks! Will look into that one ! Oh Yeah I’m getting excited! Great video guys!!
Yeah hotkeys are good if you practice alot and can enter without looking down at your keys. I prefer hotbuttons though on my montage, that way I'm not taking my eyes off the chart and I don't have a fat finger episode and hit the wrong thing. For me, I like clicking.
For option trades, sometimes the midpoint is best if you need to get in right away. Market Makers sometimes don't like to fill you right away if you are trying to get in on the bid
can you please explain .. when market opens 15 minute RSI is above 70 but after 1 minute it just crashed below even 20 ,I mean how does this happen ? who manage this and how ?
Jeff, I have two words for you... Stream Deck. Well a bit more, pair a Stream Deck with Supermacro by Bar Raiders and forget all that Ctrl-this, Ctrl-that! :)
Thanks for sharing guys, it was interesting to learn of the basket order with a sympathy play stock at the same time, I don't know if I have the ability to set that up with IB my broker. also like the sequential buy script I am gonna look into both a little closer and see if it is possible to setup and test. Great Job in the breakdown, just wondering if you could in future videos consider actual trades taken and explain the execution's and mindset at the time. Thanks again for sharing
What's the difference between hitting the offer and using market orders? Aren't you getting the best avaible price anyways when you use market orders? Why is it not better to use market orders when volume comes in to get filled right away?
When you use a market order, you tell the broker you want in at ANY price, and you can get unlimited slippage until you get filled. When you use a limit order on the ASK, you get filled at that price if liquidity allows. Personally I enter Long by using a "Marketable limit order", which for me is ASK +.05 cents. So I'm telling the broker I want to pay the ask but I'm willing to pay up to 5 cent higher in order to get all of my shares filled if the price is moving fast. Usually I get filled at the ASK or within 1 or 2 cent, maybe a little more on a stock like TSLA if it's moving really fast, but at least I know I will never pay more than 5 cents above the ASK. With a market order, there is always the risk of getting a terrible fill if you are trading in high volatility.
lots of good ideas in the comments, with a limit order you are saying fill me anywhere at or below xyz price, where with a market order you could get filled significantly higher than that limit order.
Thank You Guys! You SMB people keep surprising me in every vdo in this channel. Am learning and applying and everyday improving. Please keep helping. Thank You!
Learn the top 3 trade setups we are using on the desk here: bit.ly/3TBGQ28
Hi,is this available here in Philippines?thank you
Thanks for the video. I've been trading for 2.5 years and hadn't heard of a couple of these methods. Here's one way I've been working on using automation: I'd noticed on some big news events you get a quick move in one direction or the other (A la CPI) but on the FED days, which are kind of initially ambiguous announcements, you get a rip in one direction and then a flush/trend in the other direction. I've been working on a play that captures one or both moves utilizing a buy-stop and sell-stop above and below the pre-announcement range. This last FED-day I was trading the USD/JPY (which I've been trading a lot in the past 5-6 months) with 200-tick targets and 100-tick stops (in both directions; relatively small size to get a feel in real time). In about 15 seconds the long got filled/stopped out and the short got filled and hit the target. It was a winner, but, in my review I noted I could've dropped the stops to 75-80 ticks to improve the R/R; and could've eliminated the target orders to capture a bigger chunk of the *real move by getting flat manually.
Loved the content and delivery in this video, gents!.. so good that it changed the landscape of my developmental roadmap in a meaningful way. Ty!
love hearing this Greg!
Thank you! very helpful. Happy returns.
I am so impressed with this channel and your prop trading firm. The level of training, education and support you provide your traders is amazing. Top level, elite!
Great video
Thanks!
So “bidding” in thy regard is not necessarily placing a trade on the bid price to enter?
Smith Sharon Walker Barbara Clark Michael
When i was reading Mike's book and he said you need to have hotkeys, i stopped at that moment and went to go enable them. Thank you guys. The TWAP part was most insightful for me thanks
Nice
hot keys are the first thing we teach new traders
@@smbcapital what are hot keys
Which book? One good trade?
Thank you for sharing these great tips - I’ve increased my successes thanks to specifying aggressive limit orders on specific setups that I’ve observed moved away from my passive orders too quickly - this video absolutely hits home for me. You guys are the best!
wow - I cen't believe you all releasd such great knowledge for FREE, thank you!!
Informative. I dont even know where to look to begin figuring out how I would go about executing trades based on a TWAP order execution strategy. I use think or swim.
There's not a specific "TWAP", but here's how I'd do it: Right click on chart and hit "Buy" to bring up order; Click "Edit". From here you can go to "Advanced Order" and choose "1st Triggers Sequence". Say you want to buy 4 orders of 25 shares (total 100) @ $50.50 or less; set up the first limit order then right click the order and select "Create Duplicate Order" 3 times. Now, toward the right side of each individual order is a "settings wheel". When you click that the 2nd group is called "Conditions", where you can set a specific time for the order to be submitted (set each order X minutes apart). There's also a spot for "submit when this condition is met", where you can put in a study; If you know how to use ThinkScript you might be able create a "timer" there (that's above my pay-grade)...This seems tedious in writing but after practicing in "On Demand" or demo a few times you'd be able to do it fairly quickly...Now that I've been explaining it I think this could also be a good way to add to swing positions on pullbacks. I.e. Your initial order is a break of previous day's high, 2nd order a stop, 5-minutes later a 2nd buy-limit order goes in for if there's a near test of that previous high, 4th order a stop for that one. Something to play with for sure, especially if you're managing multiple stocks at once.
tlc.thinkorswim.com/center/howToTos/thinkManual/Trade/Order-Entry-Tools/Order-Types
@@georgemcduffey2622 thanks for the input here
@@smbcapital You're welcome. Going through the process on the platform actually helped me learn a thing or two about customizable orders on ToS. Some of it I don't think I'd ever use, like a condition for order entry being based on a Correlation Study...but you can use conditions based on just about any study; From a simple MA or BollingerBand cross to maybe having a basket of stocks trigger when the NYSE advance/decline goes positive. So many more ways to use automation than I'd thought of before.
2 great traders.I would also execute a Limit on the offer it just takes away from thinking through an extra step.Any real trader will know there was a small debate at the beginning lol love it.Both correct I guess its based on comfortability,but I would definitely limit on the offer for my trading style at least.Great job guys 💪🏾
thx! these conversations with Garrett and Jeff are great
This is fantastic! Explaining types of orders with real use case for each of them.
great video on orders , could of benefit me today, will for sure help me in am,, thanks thumbs up
thx!
Good to see Freddy Mercury on the team. ty 4 gr8 vid lads.
Jeff, I learned an important thing from you. To see trend at least one min chart go up 5 more min. I try to ignore the situations not doing that. Avoided into wrong trades.
I finally came to this same conclusion. Execution is key. You guys are good teachers. Thanks for the video.
Great information on different order types learnt heaps! Loved the Basket Order in relation to correlating stocks! Will look into that one ! Oh Yeah I’m getting excited! Great video guys!!
thx Razzy!
The TWAP method generates a lot of fees, though.
Yeah hotkeys are good if you practice alot and can enter without looking down at your keys. I prefer hotbuttons though on my montage, that way I'm not taking my eyes off the chart and I don't have a fat finger episode and hit the wrong thing. For me, I like clicking.
Seth, if you use buttons, linking a Stream Deck to those might be something worth trying
You just have to enter above the level not below it...don't be a hero.
GGGGGF ill see if theyre telling the truth HHGHJKJHK
🙏💛💪🍻
Do the futures traders at SMB trade off a DOM/price ladder?
This was a great video... Thanks
glad you enjoyed Lou
Great stuff, I have to setup my system so I am only paying the bid on some of my options regression trades.
For option trades, sometimes the midpoint is best if you need to get in right away. Market Makers sometimes don't like to fill you right away if you are trying to get in on the bid
Good stuff
can you please explain .. when market opens 15 minute RSI is above 70 but after 1 minute it just crashed below even 20 ,I mean how does this happen ? who manage this and how ?
Jeff, I have two words for you... Stream Deck. Well a bit more, pair a Stream Deck with Supermacro by Bar Raiders and forget all that Ctrl-this, Ctrl-that! :)
Stream Deck is great for so many things! Think we have a few trades who have linked hotkeys to a stream deck
Thanks for sharing guys, it was interesting to learn of the basket order with a sympathy play stock at the same time, I don't know if I have the ability to set that up with IB my broker. also like the sequential buy script I am gonna look into both a little closer and see if it is possible to setup and test. Great Job in the breakdown, just wondering if you could in future videos consider actual trades taken and explain the execution's and mindset at the time. Thanks again for sharing
Very fruitful🙏 This IS very good to go details like this when executing trades.
TWAP sounds very interesting indeed. For sequential orders do you use python to code ?
Thank you guys. This will absolutely help my trading and only slightly embarrassed I wasn’t familiar with all of it before
Blue background = partner and purple = top traders?
This vid woulda helped me so much when I was new. Great education!
Even on my A+ scalp setups I make stupid errors and let my emotions mess me. So annoying but keep grinding
Maybe size down and change your stop to atr....really helps avoid the stop runs from the market makers.
@@yamch great point here
Mind blowing 😮
What makes GME a stock in play here?
In this case it was a pure short squeeze + volume above a very significant technical level
You are not explaining what a limit on ask is
Basically just putting a limit order in on the “Ask” price.
What's the difference between hitting the offer and using market orders? Aren't you getting the best avaible price anyways when you use market orders? Why is it not better to use market orders when volume comes in to get filled right away?
When you use a market order, you tell the broker you want in at ANY price, and you can get unlimited slippage until you get filled. When you use a limit order on the ASK, you get filled at that price if liquidity allows. Personally I enter Long by using a "Marketable limit order", which for me is ASK +.05 cents. So I'm telling the broker I want to pay the ask but I'm willing to pay up to 5 cent higher in order to get all of my shares filled if the price is moving fast. Usually I get filled at the ASK or within 1 or 2 cent, maybe a little more on a stock like TSLA if it's moving really fast, but at least I know I will never pay more than 5 cents above the ASK. With a market order, there is always the risk of getting a terrible fill if you are trading in high volatility.
Depending on how the stock trades, you could be filled with a lot of slippage using just a market order vs a limit
lots of good ideas in the comments, with a limit order you are saying fill me anywhere at or below xyz price, where with a market order you could get filled significantly higher than that limit order.
*Just hedge, and never use stop loss !*
Thank You Guys!
You SMB people keep surprising me in every vdo in this channel.
Am learning and applying and everyday improving.
Please keep helping.
Thank You!