Market Order Slippage Warning

Warns when market orders are most dangerous

Traders often report surprise fills during fast markets. This recipe warns that market orders don't guarantee execution price and suggests safer alternatives when spread/volatility is high.

House RecipePersonal4 min setup

INGREDIENTS

🔔Notifications

PROMPT

Create "Market Order Slippage Warning". If I attempt a market order when spread > 0.05% or ATR is >1.3x baseline, warn me that execution price is not guaranteed and suggest limit orders or splitting into 3 clips. Tag the execution as "market-order".

Pain point

Market orders optimize for immediacy, not price certainty — especially problematic in fast moves.

Triggers

Attempt to place a market order

Conditions

Trigger only if spread or volatility exceeds thresholds
Allow if spread is tight and depth is healthy

Actions

Warn and recommend limit or staged entries
Suggest splitting size into smaller clips
Auto-tag execution: "market-order"

Parameters (defaults)

warnIfSpreadPercentAbove: 0.05
warnIfATRMultiplierAbove: 1.3
suggestClipCount: 3

Examples

If spread is 0.10%, warn and suggest limit order.
If volatility is elevated, suggest 3 smaller orders instead of one large market order.

Tags:#trading#execution#slippage#market-orders