For the guys living in germany or wherever you have this limited risk accounts. How does one set a guaranteed SL opposed to a “normal” SL from ProOrder?
@Nicolas, do you maybe know how this is done?
As I understood when you have a limited risk account the normal stop you put in proorder automatically turns in to a guaranteed stop. But I’m not sure. Have been thinking about opening a limited risk account for some of my systems.
Ahmm “turns into a guaranteed stop” – what does this mean? As I understand the guaranteed stop has a higher minimum stop distance as a normal stop. So does this mean a normal stop becomes guaranteed when the distance is big enough?
For this to happen does one have to use the set stop command? I can not really believe this “turning into guaranteed” Victor. How shall PRT know when to do so? I can have a pending stop order in the market and I don’t want it to turn into a guaranteed one (as I understood a guaranteed stop order costs money?).
What I wrote would be given that the stop distance is large enough on your strategy. If it’s not I guess your order will be rejected. If you have a limited risk account you can’t open a position without guaranteed stop right?
@Despair
You will be charged the guaranteed stop premium only if it is triggered. You can have an order in the opposite direction to avoid the guaranteed stop loss being triggered.
when you have a limited risk account the normal stop you put in proorder automatically turns in to a guaranteed stop
True.
If you have a limited risk account you can’t open a position without guaranteed stop right?
and also true. All strategies must have a SET STOP LOSS instruction somewhere in their codes. (TRAILING STOP is not a substitute).
And the stop order must be set with SET STOP LOSS? Or will another stop order also work?
Copy/paste from the rules I know about limited risk account:
For information purposes and for memory, here are the main features of the limited-risk accounts and which can have an impact on ProOrder:
- Stops followers: Stop followers are not allowed on limited-risk accounts
- Guaranteed Stops: All ProOrder protection stops are automatically converted to guaranteed stops. On this type of stop, the level of execution is guaranteed, even if the course evolves brutally against you. Special pricing applies (only if the stop is triggered)
- Attached Stops: A protective stop must be attached when opening a position or placing a purchase / sale order. In the code, the SET STOP pLOSS statement (for example) must not be in a condition (IF / ENDIF)
- Distances of stops: It is not possible to move a protection stop away from the position (ie SET STOP pLOSS x, where x variable requires never to increase x after the stop, but it can of course be brought closer to Condition to respect the minimum difference between the price and the new stoploss value)
- Hedging: Limited risk accounts do not allow you to be both long and short on the same value. Therefore, it is not possible:
To have a strategy LONG and another SHORT if these strategies are launched on instruments with a common underlying (eg France 40 and France 40 mini)
To set 2 limits of opposite direction on the same value
To place a stop in the opposite direction to a position, between the position and its protective stop
In addition :
The minimum stop distances are greater than the so-called “expert” accounts (current normal account), the information of this distance can be found in the instrument’s manual trading information (expressed in points or percentage for actions ).
Since the follower stop will not work, the SET STOP TRAILING instruction will be inoperative, so I advise you to use the coded trailing stop you find in the blog part of the site (many strategies already use it in the code library ).
The stoploss can be far from the entry price, far enough, but you must take into account your margin required to place it (of course you can not lose more than the size of your money account, so be vigilant at Level of the stoploss).
