That happened some days ago to me, incurring quite big losses on my account :( Stop Loss seems good solution for that "client failure" problems.
However there is another problem that needs to be corrected as soon as possible too, cause it nearly wiped out my account. I reported it to Eugene, and now I'm sharing with the list to see if anybody suffered that and how can we solve it smoothly. Imagine you have 2 open positions and 3 strategies running. If 3d strategy tries to open a position and you have insufficient funds to cover margin, IB will reject your order. However JBT won't get noticed of the order rejection and will get to a "frozen" state, where any of running strategies will close their positions. Under an unattended JBT running instance that means that a strong inversal trend can incurre you big losses (as happened to me). Best, Victor On Mon, Mar 21, 2011 at 2:17 PM, alrts <[email protected]> wrote: > Hi Eugene, > > Imagine that your strategy establishes a long position. As you have > had good results in the previous weeks you opted to trade 5 contracts > instead of one this day. Soon after that, your internet connection > goes down along with your home phone (same provider) and it happens > that you misplaced your portable phone or you cannot find IB's phone > number. Now after desastrous news coming in by a ticker ES falls like > a rock. > > This can cost you several month's cumulated profits in a matter of > seconds. > > The IB API offers methods to avoid this: Along with your MARKET order, > you can place a second order that will become active as soon as your > initial order has been filled. The only thing you have to do is to > place a STOP LOSS (child) order and supply the order ID of your > initial (parent) order in your order object of the STOP order. > > order.m_parentId = order ID of initial order > > The stop price for this STOP order depends on the maximum of points > you are willing to risk in such averse situations. I think it would be > best to define it within your strategy base (per instrument) with an > overwriting capability within the individual strategy. It should be > very easy to implement. > > What do you think about this? > > -- > You received this message because you are subscribed to the Google Groups > "JBookTrader" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/jbooktrader?hl=en. > > -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jbooktrader?hl=en.
