IG's Guaranteed Stop Loss Orders - Trading strategy

[skc]

Guys,
look at my above example.

I think we are agreeing... one doesn't and shouldn't need GSL on every trade. It depends on the trade and the market environment. And in the current volatile market, I personally would err on the side of caution and additional risk control.

BTW, out of interest, you mentioned that you paid $6000 on your GSLs. Have you by any chance know how much you have saved with the GSLs (i.e. GSL stops hit while gapping)?

 

[skyQuake]

If your GSLs get hit by gaps one in every 2 trades, then you're ok. Otherwise, you're just giving away money.
They probably hedge with oppies if they're Really concerned, but otherwise, its just more revenue...

 

[white_goodman]

well if i had the option id still probably use GSL around 70% of the time... but when IG markets rang me they said you have to earn over 30grand a year to have the option otherwise you have to take the GSL account...

and because im a casual cadet 3 days a week and uni full time im jsut under the threshold...

if i earn say 10g this year off trading i could then switch over but until then i have no choice

 

[kam75]

I'll only trade CFDs on highly liquid US stocks and with stops so tight it can barely move. I get stopped out about 7 times out 10 but the losses are usually small compared to the profits made on the remaining 3 trades. But everyone's different and there ain't a best way to trade. Just what works best for you.

Regards
kam75
_____________________________
http://www.sharesmadeeasy.com

 

[James Austin]

IG Markets have a nice little cash cow called a GSLO (Guarantee Stop Loss order) which will force an order to go through at a the specified price even if prices gap past it. (And you pay handsomely for the privilege)
Similar to a barrier oppie/warrant where YOU choose the barrier level...
Problem is that you will pay around 1~2% of order value for this stop with stocks, and its set a min 5% away from current price levels.

Indices its slightly different. For the SPI its 5pts paid as prem (+2 spread) and min stop is 15pts. Although the index rarely gaps 22 pts, there is a way to make the most of it.

Playing morning gaps is farily hard, as a 'straddle' will cost you 14 points outright, and you need a gap of 29pts to break even.. not to mention the horrible spread when night SPI closes in the early morning.

I've been 'straddling' instead public hols and days where the SPI closes early. Eg Aus Day, Christmas etc so there is no night SPI, and you straddle can enjoy the full move of overnight markets. Backtesting is incredibly limited but %success and expectancy is quite high.

Just a strategy to think about at the next public holiday

it could be worth using the GSL this morning.

the vote is due, i believe, prior to ASX open, but ftse, wall st futures etc will be open for trading

anyone know the exact vote announcement time and have a video link?

 

[BradK]

it could be worth using the GSL this morning.

the vote is due, i believe, prior to ASX open, but ftse, wall st futures etc will be open for trading

anyone know the exact vote announcement time and have a video link?

therealnews.com has a live cspan feed at the moment, so you can see the action there.

IG Markets might as well put a hood over their heads with a saw off and home invasion - enough said.

 

[NAsX]

anyone know the exact vote announcement time and have a video link?

I've been looking at this as well, so far only found on news.com.au that the vote is due at 9:30am.

 

[James Austin]

I've been looking at this as well, so far only found on news.com.au that the vote is due at 9:30am.

due ~11am Aus
at least 60 "for" required

 

[NAsX]

Yes, sorry for the confusion, vote due around 9pm US ET, around 11am our time.

 

[white_goodman]

when the markets are trading normally i dont really want the gsl, but recently they have paid for themselves ten times over... taking the good with the bad i guess

 

[Reealjrd]

Hello all,

It does not matter with which broker or company you open your trading account. But the trading strategy must be i a way that gives you profits and loss at an average. Trade on your strategies use Stoploss if having profit in any trades. Use some tips and calculation like pivot points Resistance, Support etc.