Hi there,
I think we all got the following message from PRT from time to time for limit orders:
“order status: rejected
order rejected by the broker or the market
the required order level is too close to the current market level. The minimum distance for this market is x points”
My idea to circumvent that annoying and pesky little problem is the following bit of code (obviously just an example):
sellshort1 = max(tradeprice + 20,close + 2)
sellshort2 = max(tradeprice + 20,close - 2)
If onmarket and close > tradeprice + 20 then
Sellshort 1 contracts at sellshort1 limit
Sellshort 1 contracts at sellshort2 limit
endif
Since PRT cannot execute a sellshort command simultaneously at two different market levels, it’s going to execute the sellshort command at market. I’ve tested it, it works..
My question now to you guys is threefold:
- have some of you applied the same strategy?
- if so, have you ever had any troubles from applying this strategy?
- how risky is it, knowing that PRT can’t execute sellshort commands at 2 different market levels?
Thanks for the feedback,
cheers!
Hi there Albaran,
Your text looks good to me, but your code does not resemble the text. OK, wait, I just don’t understand and you imply to execute the Limit order at the wrong side of the price or so, and then call it “Market” (which would be correct).
I like tricks and I like to learn new ones. 🙂
You do realise that the +20 is very often not enough because not even 85 will suffice ? (if this is related in the first place !)
PS: How can you have tested this for its working out ? I mean, you will never know when this crazy thing happens and thus also not when / whether it helps ?
Yes, STOP orders are to be used when you want to enter a SHORT position at a lower price.
Moreover, bear in mind that adding numbers to a price should be done converting those values into a price by multiplying them with the keywords PipSize or PointSize, unless you are only dealing with instruments having a 1:1 pip/price ratio.
Yes, STOP orders are to be used when you want to enter a SHORT position at a lower price.
Moreover, bear in mind that adding numbers to a price should be done converting those values into a price by multiplying them with the keywords PipSize or PointSize, unless you are only dealing with instruments having a 1:1 pip/price ratio.
Yes, I took a 1:1 market in my example.
I wasn’t aware that you could use a stop order to add to an existing position..
That changes a lot of things 😉
STOP orders don’t mean they are to be used for setting a STOP LOSS.
STOP orders are to be use whenever your entry price is WORSE than the current one, i.e. lower when you go South and higher when you go North. When the entry price is most favorable use LIMIT orders, instead.
STOP LOSS uses STOP orders, for example when you are LongOnMarket, because the STOP LOSS wants to close that trade simply going SHORT, and it’s going SHORT at a worse price (lower than the current one, at the time the STOP LOSS was placed).
