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Is there a limit/penalty on changing STP order more than X times?

 

I want to enter a STP order and then change the trigger price as time passes. Someone mentioned that the exchanges "dont like it", and therefore can penalize me in some unknown way for doing this. Is this correct? Is it exchange- ocr asset class-dependant??
Thx for any input
Peter
 

I would also like to do multiple changes to a TRAIL order, ie changing the trailingpercent value.? Would that be pelanized somehow?
 

Seems close to this thread?? /g/twsapi/topic/80863099#46628
Look to me that the link to IB article is broken, try search with keyword/sentence is "Order Efficiency Ratio" or "Optimizing Order Efficiency"

IB require some "efficiency" in the management of your orders, IB even give you report tool to analyze your account order efficiency (or lack thereof).

This is a Pandora-box issue because there are a lot of tradeoff behind it, many of theses tradeoffs require strategical choices: Speed versus flexibility versus safety when lack of liquidity etc ...
Suggestion: study IB offers first, . They do a lot for you and are well integrated.
 

Yes, IB will charge you if you change an order too frequently.? I believe the rule used to be 25-to-1 for the order-to-fill ratio in a day.? NASDAQ and NYSE also charge IB if they send too many orders and don't get enough fills.?
 

Thank you for this information. So if my strategy would be to change the STP or TRAIL order up to 10 times before it hopefully executes, that would not be a problem then?
 

10 seems to me above IB criteria for an efficient ordering, try staying below 5.
Also the rate of your change have an impact: Think "human", IB is very tolerant to anything that match human pace.

Why do you need to change so frequently a TRAIL order ?
Looks like you expect IB to react faster than your algo, but somewhere this is a catch 22 situation because IB may react too fast too. You may have to consider improving speed of your code and directly send a sell at market or hedging your position by going opposite? then release both, this increase trades and may improve IB view of your efficiency (I never try hedging for that reason).
 

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Just to make sure I understand correcty, you are referring to an order to aquire a position?

Would the same regulation apply to a stp child order connected to an open posiition? My algo places a lmt order with several child orders connected, amongst which a stp and trail. The trail is wide, the stp small. When the parent order is filled and the position becomes profitable my algo keeps changing the stp price to a certain level (acting like a smal trail order really). For one open position this may be up to 80 changes. Btw, this is on futures trading on the cme.

Thanks, regards,
Raoul


On 30-06-2023 15:21, FreeGoldRush wrote:

Yes, IB will charge you if you change an order too frequently.? I believe the rule used to be 25-to-1 for the order-to-fill ratio in a day.? NASDAQ and NYSE also charge IB if they send too many orders and don't get enough fills.?

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