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Stop loss question

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Yatagan
Frequent Contributor
I put a trailing stop loss on a short trade on the ALMI at 28067 today. The number was 35 points with a 5 point trigger value. When I looked again a few minutes later, I noted that the ALMI had moved up and that the stop loss had triggered at 28102. However the trade never executed! On enquiry, the folks at Standard OST said that the market had moved too fast for the trade to be matched. Is this a normal occurence? Is a tailing stop loss effective at all?
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7 REPLIES 7
Rams
Super Contributor
your 5 points is too small, increase it to or more than 35...the folks should have told you
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Not applicable
you cant have a stop loss that works well on the Alsi mini,reason being that it is to illiquid, a stop get triggered at the price it trades and thus in your case it traded higher..
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DawieB
Contributor
Difficult one. What was the price limit of your stoploss set at? If that limit can't be matched (especially on the ALMI, which is so illiqued(sp)) then the trade doesn't happen...
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Mar-11
Super Contributor
std bank should set it up so stop on almi based on alsi...the problem is that...it can move thru ur stop with out any trade taking place and ur stop not being trigged.....the maket makers bid and offers can be below ur stop but if someone not trading u wont be trigged...
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Not applicable
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DawieB
Contributor
Frost, you had the spelling right. Its "illiquid". I was just to lazy to go back and check :P
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Yatagan
Frequent Contributor
Thanks to all for your replies. I'll bear it in mind for the next trade. Of course I missed out on the day :(
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