stoploss & slippages : a thread to understand how to avoid big slippage when you get stopped out #Qunat #AlgoTradeing #Nifty #stoploss (p.s. this is just an effort to educate & example is for illustration only.) hope this helps.

1. NSE maintains two orderbooks one which has all the bid & ask offers till its full depth 2. is stoploss orderbook which is not available for anyone to lookup unlike the 1st one.
you can place two type of stoploss orders one is SL-Market & SL-limit
These SL orders gets recored in SL-Orderbook in 1st come 1st basis for that mentioned trigger price
ex. 1) 9:20 -> SL order trigger at 100 qty 500
2) 9:45 -> SL order with trigger at 100 qty 500
3) 11:30 -> SL order with trigger at 100.5 qty 500
Now when price is dropping and as soon as it starts hitting the trigger prices mentioned in SL-Orderbook .. these orders get released in pubilc bid ask orderbook. in this case for our ex. trigger execution order will be 3,1,2
for this particular day market opened gap-up, for lot of traders this becomes bullish bias .. with this bias market was in very narrow trading zone giving everyone opportunity to enter .. majority of ppl will keep SL below nearest swing low.
now if majority of orders waiting in same/narrow price range .. all it takes for market to hit 1st few orders to generate cascading effect
as soon as market maker & hft algos see that flood of orders at top ask / market price they pull out / cancel their bid prices and move to lower levels to get better price & b'cuse there is no buy order to fulfil SL orders it become like oil in fire
prices rush down swiftly - for SL-market to fulfil at lowest levels & SL-Limit keeps hanging at high levels ..
for these ppl now panic kicks in and they convert Sl-limit to market and this 2nd push takes prices even lower
so now how to lower our slippage risk.. here in general you can follow two approaches
1. keeping trigger at higher level avoid round prices like 100, 110, so if your swing low if at 102 most ppl keep SL trriger at 101 or 99 to be on safe side ..
take in consideration that how important that swing low is (e.g. double bottom etc) the cascading effect itself will pull prices from 102 to 99 .. so its good to keep SL at 102.10 / 102.25 / 102.35
2. method requires pre planning .. most of the time ppl enter into the trade in in sequence like signal -> confirmation -> order
so instead for waiting for confirmation 1st place your SL order on signal (you need to calculate your RR on this price)
this will book your 1st place in SL-order book (seat pe rumal rakh dena)
now on confirmation place your buy order.
for more safety & large qty SL execution you can follow document mentioned in below tweet. https://t.co/mh4xjjDqby

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🌟Lesson 1 - weekly /monthly breakout push stock price 30/50% higher in 2/3 weeks.

Ex- #sastasundar after breakout 145/155 zone , stocks in 2/3 weeks given 30/40% return.

And in 2/3 months it was double 💞 https://t.co/9kkc3IV4Lo


🌟Lesson 2 - if stock is making same pattern ( in 2 /3hours chart) after given breakout of (weekly /monthly chart) , then chances of stock going up is much more.

Ex - #HGS after given breakout of Trendline ( range) in monthly chart, again making same pattern 4 hours chart. 💞


🌟Lesson 3- if stock never come to retest it's weekly & monthly breakout zone then the chances of it's 2x is much more.

EX - #happiestmind everytime consolidating & making new high. 💞

@chartmojo
@charts_breakout


🌟Lesson 4 - when whole market fall still strongest stocks only consolidate or move down very little.

Ex - when this march market took correction 800/1000 points #jindalpoly just consolidating from that time.
Now ready for new high . 💞


🌟Lesson 5 - when market recover the strongest stocks recover very fast & will make new high.
Ex - #happiestmind when market take little correction & again bounce little , then #happiestmind made new high before market .
This is so useful. Thank you @heartwon 🙏
Should you add more in Equity or redeem right now?

A thread 🧵to guide retail on why & what should they do at these historic market highs.

Do ‘re-tweet’ and help us educate more retail investors (1/n)

#investing #StockMarket

Some investors feel that markets are trading at a PE of 27 vs 10 years historical average of 20 and a market-cap to GDP of 105 vs historical average of 79 and hence markets look expensive (2/n)


But, in such crazy liquidity driven markets, prices can move much ahead of the fundamentals & suddenly we start hearing commentaries of how the market is pricing in the earnings of FY 22 & 23 to justify the rally

If you r new to fundamentals, 👇 can help


Results for Q4 have come out very well but that is also because of the lower base effect of the last year.

Over the last many years, markets have corrected 10-15% each calendar year. Can it happen this year as well? Can very much and that can be a great entry point. Why? (4/n)


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-$ index moving up
-Inflation moving up
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All of the above are –ve for markets & liquidity on the other side driving markets up, its impossible to judge the near term movement of the markets (5/n)

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