Advice please!
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Sorry for being confused, but I am just beginning to trade with real money, and I am using EXTCapital, MT4.
When I want to place a buy stop order, there is a message on the ticket saying that “Open price you set must differ from the market price by at least 20 pips.” (GBP/USD). In other markets it ranges from 18 to 24 pips.
Yet I read on forums of people setting buy stops 2-3 pips above/below candles. So how could I do this?
Also stop losses have to be set more pips away than I sometimes require. Anybody else have this problem?
Cheers,
Dave.
Hi dave,
Use market execution, so set a line where you would want to enter, and when the market hits that after your signal, pull the trigger.
Cheers,
Lewis
Hi Lewis, yes you are right that would be a simpler way of doing things. But I was just experimenting and was surprised that such a large difference is required.
By the way, was reading on your other post about the stop loss problem, ie it being filled in early. Have you e_mailed your broker about it? Not ETX by any chance is it? Anyway, would love to know what they have to say. I,m going to e_mail mine…
yeh, it can be quite annoying sometime if you have 2 trades you are wanting to place, if that is the case then just open ETX twice on your computer and you can have 2 orders at the ready.
I havnt yet, I was wanting to see what rich said or one of you guys if this is normal. I’ve never had that happen to me before (or i havnt noticed). I would of understood if it went past my stop loss for a couple of pips, but before is pretty annoying…
Also, if I use market execution, to get in quickly, then modify, to set my stop loss & take profit, I still then get the same “must differ from market price by 20 pips” at modify stage.
How close do you have your stop loss? if you are taking an engulfing candle of say 10pips then it should work fine. .. if a smaller candle does form, then you might just need to use the position size that you are able to use depending on how close it is letting you have your stop loss (but make sure that doesnt interfere with your risk/reward ratio).
before the candle prints, have you got your stop loss and target written in your order just the same way you would have a pending order?
When the market starts moving from your entry are you trying to trail your stop really close to the market price? it wont let you do that, so just use price action to sit the stop loss behind.
🙂
To explain the market execution a little better, i will use this image…
Today, I was going to take a trade on the 7am open GBPUSD (first engulf). So i typed out my my order, The stop loss was typed in around the same level as the top purple line of that candle, and then i had a line 1 pip below that candle (bottom purple line). This candle then became invalid because the market traded up past my stop loss so i closed that order.
The next engulf candle was valid. So prior to that candle even being printed, i had already had the stop loss in place and target with the line 1 pip below the lowest price of that candle. So when the next candle past that line i then hit market execution.
(that sounds pretty confusing to read, but just read it a couple of times and it should make sense)
Anyway, doing it that way doesnt leave the order saying the market “must differ from market price by 20 pips”
the market then moved down a nice 2:1 ratio, so i took the profit and ran.
Hi Dave
I know it’s a while since your original post, but I have just joined FXBA , although I’ve been trading for nine years – successfully I’m pleased to say for the last six. However, I’m always on the lookout for new strategies.
What you describe is not at all unusual and what it can come down to is accepting the trade with slightly different parameters -or passing on it. If I see what I think is a great trade set-up, and the broker won’t accept my pending order for the reasons you describe, I’ll take the order ‘at market’ and initially put a stop in at a level the broker will accept – PROVIDED the impact on my R/R ratio doesn’t make the trade unviable. As you become more experienced you’ll realise that sometimes you need to be a little flexible. For example, I wouldn’t pass on a potential 2:1 reward to risk just because of the broker’s rules which meant I couldn’t get my originally planned 3:1!!
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