I currently have a trading system which, in my entry rule, sets both my target and stop to 2 separate V# variables. The stop is a trailing stop based on an indicator.
How would I turn these V# variables into working orders as soon as I enter the market? Right now I have it set up as simply a "flatten" order signal when HI >= V#1 (target) and LO <= V#2 (stop). This creates a significant amount of slippage, and while I know it's impossible to eliminate altogether, I would like to minimize it as much as possible.
Thanks.
It might be possible to do this with a Strategy attached to your initial entry. The Strategy can have a trailing stop. But you mentioned your trailing stop is based on an indicator. Is the indicator only used to compute the distance of the stop initially (which then trails from there) or is it used after entry to continue to trail?
Thanks for the quick reply Chad.
Funny you mention this - this is exactly what I was doing in a similar system, where I was using fixed targets / stops. The buy signal included a Strategy with a target set for x-ticks and the stop for y-ticks - worked great.
For this current aforementioned system, the target and stop vary on every trade. The target is based upon the distance from the entry to the indicator, and the stop is based on the indicator (trails all the way up. As the indicator moves, the stop does). Would this be possible to set up with working orders through a Strategy, or any other way?
I am working on an RTX indictor called StrategyAssist which would be designed to manage trading strategies in unique ways like this....adjusting stops when a target it hit, etc. However, the concern I have.....I have been told that brokers will only allow updates on the open orders every 30 seconds. I'm sure in your situation the stop might need to be moved much more frequently than every 30 seconds. I would like to get more confirmation on this limitation so let me know if you have any insight on this front. But if that is the case, managing the stop in this way might not be a possibility.
Hi Chad,
Has there been any updates since this post in regards to working order management?
I would like to have a stop limit working with an indicator, let's say parabolic SAR. If I'm in a long, I want that stop limit to be trailing up with the SAR. Is this doable?
Something like this..
If (POSITION > 0 AND LO.1 > SAR.1) THEN (SET(V#1, SAR)) // set V#1 to the SAR indicator when in a long, and price is above the SAR. I'd now want a sell stop working order tracking V#1.
Would any of the TR tokens be relevant (ie. TR_SELL_STOP)? I have had more trouble figuring those ones out.