Auto Trade Errors

What is happening with Auto Trade? I use Auto trade to trade PivotCam system. All my place orders were placed twice. The way orders were placed I lost bunch of money. Please rectify the issue. Issue a disclaimer auto trade can not be trusted.



Which broker do you use? Do you use 3rd party software?

I use OptionsXpress. I don’t use any third party software.

I can’t help you with OX–it’s outside my scope–but I will contact someone who will.

Do C2 or the Gen2-3 brokers offer some sort of financial protection? If their servers go nuts and wipe my account, through no fault of my own nor the system vendor, will I get any protection or anything? Or just a “sorry”? I’m not autotrading at the moment, but I’m interested nonetheless.

You won’t even get a “sorry”. It’s all in their fine prints and sh*t happens. We shorted pot today at 191.90 right at the break down and we’re 1 point in profit and all of a sudden there is a ridiculous print at 192.70(bid and ask are still below 191.4), our stop was at 192.5. Guess what? All the auto traders got screwed and they were filled at 192 for a 10 cents loss when the inside bid and offer is still 50 cents below 192. Then the stock makes the hardest push to 192 and free falls from there. Any logic here? Nope. What can we do? Nothing. Thats a $750 gain down the drain. Welcome to the crooked world of trading.

that is why autotrading must be monitored.

I no longer buy into the concept of "lights-out" autotrading. Years ago, I lost 35% of my trading capital at a broker, due to their synthetic version of an OCO (at an exchange that did not support it, so the broker "coded their own version."

It was an expensive lesson in the concept of trades that are "not held." their "sorry about that" did not help much…

I agree, one shouldn’t go on vacation and trust autotrading. But given that forex is a 24-hour market, that Gen2 cannot be modified by the subscriber, and so on, it could easily be a few hours until the issue is resolved. Certainly enough to make some damage. Anyway, let’s just hope those events are extremely rare.

The issue was 3 extra Bought To Open orders was placed and after realizing the mistake immediately they issued a Sold To Close order for three extra contracts. What I want to Know where mistake happened?

So that’s why you didn’t like Xpresstrade? Am I right?

Respectfully, if you weren’t aware that was how they did it, then you should have been, if you already were aware then you should’ve known the risks involved as I seem to remember they gave plenty of warnings, either way playing the blame game won’t prevent it happening again if the real reason lies within, as in these cases it often does. Sincerely.

You are right that this is unfortunately part of the game in trading, it is good that you can highlight that to people as this is the kind of thing most only learn through bitter experience but it is all part of the risks involved that subscribers would otherwise not see.

In your specific situation maybe the print (less than 1% away) is really not that ridiculous, in a recent trading exercise with real money I had been daytrading GOOG and was never able to put in stops for fear of ‘false’ prints taking me out, manual stops were the only answer it seemed, could you not do the same?

I was quite aware how they did it. They advertised their functionality.

There was an OCO on the ES. It hit the two sides 30 minutes apart. One would think this should be enough time for a system to flush the other side. It was a straightforward order.

But some of the things people have been saying here and elsewhere about autotrading made me come to the conclusion that leveraged trades via unmonitored autotrading is not something most traders should be doing.

I wouldn’t worry about this on EOD systems, though.

I need to protect the capital with a hard stop in case something adverse happens. In any case, my previous post was primarily criticizing the market for not respecting the NBBO. That is the whole reason why these types of things happen. It is not the fault of auto trading or C2. I find the auto trading fills extraordinarily fast in my subscriber accounts most of the time. Perhaps, one way to avoid stopping out on a bad print is to check to see if the bid and offer are at or near the stop price before execution.

Sathya - I have someone looking into this now. I will communicate by email with you as I learn more. Although of course this does not diminish the seriousness with which I regard any autotrading problems, let’s please keep in mind that you volunteered to use the beta-test OptionsXpress interface, which is offered for free as part of a beta test program. In addition to being free, it is very prominently labelled as beta test, and it may indeed have beta-test teething problems. That said, we’ve grown increasingly confident in the OX interface over time, and thus I am surprised to learn about your problems this morning. But let me look into it, and see what I can discover before I comment more fully.

While obviously we aim to have perfection in all interfaces, if a beta-test glitch is going to be a very upsetting experience for anyone reading this message, I strongly encourage you to move to the more battle-tested OpenECry AutoTrading interface, which is no longer in a beta test period.