Liquidity problem or Nadex demo glitch?

#1

I placed a trade today and got a shock today, but I would like to learn from it. I place my trade from the Apex scanner without checking the contracts available. I placed a BUY for 20 contracts at 8’:30am on ES going by the Alchemy system. My trade was going well and I had a 4:15pm expiration with my stop trigger in place. I had a stop trigger set for 2081.5 but I could tell the trade probably wouldn’t trigger it.

At 10am, there was an expiration for an intraday spread and all of a sudden the Apex scanner says I have a loss of over $5000. I had been in profit of around $730 before the expiration. I did not execute any trades because I was in my uptrend and had plenty or room to carry the trade. I closed out all positions because I had never seen it before.

In order to make sure I LEARN from this, was this a problem of me overbuying or did Nadex execute orders on my demo? Why did they execute a sell order to close my positions?

#2

20 is not a liquidity issue. If the book is taken out it will refresh. With 25m people do dumb sizes all the time in demo. Nadex does not execute trades on your behalf. I’m not sure why your mentioning a10 am expiration when your trading the 4:15 You state you closed all positions yet your image says nadex did it without you triggering it. They did not execute the sell order you did. When you but you sell to close. Lesson someone probably just used their demo to mess around and buy the book liquidity. You went to bail and someone saw a crazy price and SAID HEY I’LL take that and did.

Lesson check price before exiting.

#3

Hello Darrell. Thank you for responding, but I only closed everything out after it showed in the Apex scanner that I was down significantly. I had placed my stop trigger from the scanner according to the MVP line recommendation. That was 2081.5 at 8:30am. There was another contract set that I was not in that expired at 10 am. Then at 10am the Apex scanner did some weird thing that looked liked it reset and when it came back up I had a huge draw down. I did not want to close out because I wanted room for my trade to run. I was in profit at 10 am when that other set of contracts expired and the scanner did that weird reset thing. I wish i had taken a screen shot of it.

But even if I did want to close my trade to take profit, why would the contract fill at 2078 and then all the way down to 2051 and 2050.3? I thought limit orders executed at around the trigger price you set or better? I didn’t write a stop trigger at 2050. The offer price wasn’t as low as 2050 at 10am…

I don’t understand about the book being taken out to refresh. How do you buy the book liquidity? I’m very new to trading so please explain. :hushed:

Do I exit the stop trigger first and then exit out my open trades? I would just like to understand it so that I am setting up my stop triggers correctly from the scanner, so that random people don’t buy at 2050 (the floor of the spread).

Here’s what I got from my transaction history on Nadex:

Once again thanks for all your help. I really love Alchemy and the Apex scanner. I just want to make sure I understand why things happened.

#4

One thing that messed me up twice when I first started was. I did a binary trade. I was in the black on the P&L,nearing EXP. Then, about 3 minutes or so, The P&L was showing a -43.00 . Thought I was losing BIG TIME. So, closed the trade. Should have left it alone.It was the market makers resetting the price. or something like that. The book being refreshed is when some one takes all the 20 contracts available. So, the Market makers put in 20 more.If, I have that correctly. Sure others can explain it better than I can.

#5

Actually this helps quite a lot. I was not aware that resetting the price could happen. Your situation sounds very similar to mine. Next time I will leave it alone. Thanks for your reply.

#6

It is demo. You and everyone else has 25k. If someone buys say.all 100 contracts etc then if someone has a different stupid price in there ie a biy at the floor and you say you want to buy 10 ticks off market then you will get that price unless you enter a worse limit in the stop trigger thats why the worst limit is there.

If you have a stop trigger working and want to manyally exit. Then cancel the stop trigger.

If you use instant submit make sure you look at market price first in case ie your selling at floor. Instead use open ticket when you enter a limit up at where your worst acceptable price.

If you where down that much was there much left to lose. Was there a reasom to exit? If the price was that far off the market ie do to somoene buying out the book in demo just wait for it to refresh the top level and it will go back to normal. Dont panic :slight_smile: