Why Stops Do Not Guarantee Fills
A stop is an instruction to send an order, not a promise about what you will get. Most of the time it works approximately as intended. The exceptions are properties of market structure, and no setting changes them.
Every StaxInvesting article tagged stop loss · 3 posts.
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A stop is an instruction to send an order, not a promise about what you will get. Most of the time it works approximately as intended. The exceptions are properties of market structure, and no setting changes them.
These two order types are one word apart and produce opposite failure modes. One fails by price, the other by leaving you in the position — and for an unattended system, the second is the one that breaks things.
Break-even stops feel like free protection. They are not. The entry price is exactly where the market is most likely to return before continuing, which means the mechanism exits good trades at the worst point in their path.