The below is only in the context of trades automation.
The workflow looks like this for a market order:
- TradingView indicator triggers the BUY or SELL signal
- Then the alert is fired
- The third-party Chrome extension captures the market order alert and sends it to your broker - creating an order
There are many reasons why the market order could fail to be created or fail with its own purpose
Network issues delaying the order and we end up getting in at a totally different price
Slippage
Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed.
Slippage can occur at any time but is most prevalent during periods of higher volatility when market orders are used.
It can also occur when a large order is executed but there isn't enough volume at the chosen price to maintain the current bid/ask spread.
So what?
🔸 Market orders may be delayed anyway from TradingView to Webhook (Chrome extension) to exchange.
🔸 Good traders and pro traders use limit orders, they don’t use market orders.
🔸 Limit orders, never market orders, so they are not screwed by the market makers
Manual trading and market orders
For manual trading now, when the conditions aren't favorable (Support/Resistance near, different leading trend, ...), a trader can either:
wait for the pullback and set the market order (the above doesn't apply if he/she can make sure the order is really filled)
set a limit (or laddered limit orders) near the pullback region
🔸 Assuming you want to get in a LONG with 10k lots (1 EUR move = 1 pip basically)
You could split your LONG limit order and laddering it around the pullback zone.
