‘1cent trailing stop’

[nav 0]

Hello Fellow traders, over the last few weeks i’v really started to appreciate this community. This is my first post so be kind :)

I want to evaluate a trade with a very large position size, with a 1cent trailing stop... as a 1min ORB. 
eg, if stock trades at $20, buy 10,000 shares with a .01 price trailing stop. I understand my trailing stop would fill at market price and not limit (price-.01cents), but a higher win% would give a much better risk/reward right?  I have found that predicting a few cents move as a part of an opening trend is  almost always right... just volatile hence unsure of order getting filled... and i don't think I can test this in a simulator? Any experience with trading very very tight trailing stops at open? 

 

 

[kishp_ 5]

I see multiple issues with this strategy

1) ORBs are so volatile that a 1 cent stop loss will likely be stop you out before ANY move in a positive direction

2) Your losing trades will not only be exposed to a 1 cent loss per share but also an additional 1 cent lost to round trip commission if you are using IBKR

3) A sharp move downward may fill a market order 3-5 cents below your avg cost, meaning $400-$600 loss on a single losing trade including commission

 

 

 

[nav 0]

noticed the same as point 1, tried once,  had $300 in loss even before the candle could move. Question on point 2, why would there be commission with IBKR? i thought they were commission free. 

[Roberto 10]

IBKR is not commission free.