Stop Cascade Simulator


This application simulates an exchange with participants quoting around a central price of $1,000. The market maker will place limit orders which also have a probability of crossing the spread and trading. Stop orders can be placed at any price level either on the buy or sell side by clicking on the stops section. These will be triggered when the last price crosses their stop price, and will execute as market orders.

Try and create a stop cascade by placing a series of stop orders, and then placing a market order so that there is a chain reaction of stop order triggers causing a price wick.

For more information read the blog post or check out the source code.

  • Use the start/stop/reset buttons to control the simulation.
  • The candlestick chart shows 5s candlesticks of trade activity.
  • The order book shows the level 2 distribution of liquidity.
  • The stops section shows the distribution of stop orders. black indicates an untriggered stop order, red indicates a triggered stop order that is waiting to go into the book.
  • Click on the stops section to place stop orders.
  • Click on the buy/sell market order buttons to place a large market order.
  • Limit Order Rate controls the rate at which limit orders are placed into the book by the market maker.
  • Stop Order Rate controls the rate at which stop orders are activated and placed into the book once they are triggered.