Having the right tools to facilitate decent order fills
and manageable stop losses within the reality of volatile algo /
marker maker controlled market.
Brokers have putzed along the past decade or so in making tools
available to retail customers that help execute in the realities of
the market.
Schwab recently (I am not recommending them), for instance, has
developed a nice simple conditional order which I have always
wanted to have.
Instead of chasing directional moves and fakeout breakouts, you
can put in multiple conditions to trigger on false breakdowns
through prior lows / gaps / trendlines etc
As an example, First Maj (AG) has been basing / contracting
along with a lot of silvers the past month. I noted three
recent days in the middle chart where one could have gotten long
within the weekly pattern by buying reversals after a prior low
failed then reversed higher.
The far left chart shows how to set the conditional order.
The example shows how a reversal entry at the gap from a few days
ago could be achieved if we go back down. Condition one in this
type of entry would be bidding / trading to fill the gap at around
4.70 low. That triggers a live buy stop order which would be
typically back up about 10c at $4.80. A subsequent stop would
have to be put in manually in their system.
A lot of folks would want to go all the way back through the
previous close to get filled. Some might just use the price
with of a 5' or 15' bar, etc. But I think this type of order
is far superior in the you get a much better price location and
have a much narrower stop. I know IB has a form of this , not
quite as idiot-proof, and I'm sure Tradestation has language for
this. Haven't checked with Ameritrade, yet. If
you have any useful tools of this nature that you use, I'd love to
hear about them.
Here's a good example of using the automated 2 step conditional
order.
MDR noted for its relative strength yesterday. Gap fill
at 2.80 was noted, which was a 38 fib of the 2.20 to 3.15
range. If looking to capitalize on potential oil snap backs,
this is a potential vehicle.
Condition 1 Fill gap - "bid goes below 2.80"
. This sets buy stop.
Condition 2 Order trigger - Trade Price goes back through
support / recent intraday lows around 2.85 ... " trade price
goes above 2.85"
Doesn't look like much but , 20c potential gain (2.85 to
3.05) with 5c risk, and that's just intraday / overnight stuff with
good trade location and computerized execution.
They've been plodding along trying to integrate options express
and build out a better trading platform. They finally got 3+
legged option spreads available and I noticed there conditional
order trade. This is extremely useful to buy reversals of the
usual tapouts before something continues higher like the precious
metals have been doing the past week (or vice versa).
Streetsmart edge is a separate platform you'd have to download from
their main site.
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Broker Multiple Condition Orders - Buying Reversals / Positioning Within Patterns
Posted by hatefalseweight on 3rd of Jan 2015 at 06:24 pm
Having the right tools to facilitate decent order fills and manageable stop losses within the reality of volatile algo / marker maker controlled market.
Brokers have putzed along the past decade or so in making tools available to retail customers that help execute in the realities of the market.
Schwab recently (I am not recommending them), for instance, has developed a nice simple conditional order which I have always wanted to have.
Instead of chasing directional moves and fakeout breakouts, you can put in multiple conditions to trigger on false breakdowns through prior lows / gaps / trendlines etc
As an example, First Maj (AG) has been basing / contracting along with a lot of silvers the past month. I noted three recent days in the middle chart where one could have gotten long within the weekly pattern by buying reversals after a prior low failed then reversed higher.
The far left chart shows how to set the conditional order. The example shows how a reversal entry at the gap from a few days ago could be achieved if we go back down. Condition one in this type of entry would be bidding / trading to fill the gap at around 4.70 low. That triggers a live buy stop order which would be typically back up about 10c at $4.80. A subsequent stop would have to be put in manually in their system.
A lot of folks would want to go all the way back through the previous close to get filled. Some might just use the price with of a 5' or 15' bar, etc. But I think this type of order is far superior in the you get a much better price location and have a much narrower stop. I know IB has a form of this , not quite as idiot-proof, and I'm sure Tradestation has language for this. Haven't checked with Ameritrade, yet. If you have any useful tools of this nature that you use, I'd love to hear about them.
Schwab Conditional Order Example MDR Range Reversal
Posted by hatefalseweight on 7th of Jan 2015 at 12:43 pm
Here's a good example of using the automated 2 step conditional order.
MDR noted for its relative strength yesterday. Gap fill at 2.80 was noted, which was a 38 fib of the 2.20 to 3.15 range. If looking to capitalize on potential oil snap backs, this is a potential vehicle.
Condition 1 Fill gap - "bid goes below 2.80" . This sets buy stop.
Condition 2 Order trigger - Trade Price goes back through support / recent intraday lows around 2.85 ... " trade price goes above 2.85"
Doesn't look like much but , 20c potential gain (2.85 to 3.05) with 5c risk, and that's just intraday / overnight stuff with good trade location and computerized execution.
Is this available only on
Posted by darnelds on 5th of Jan 2015 at 11:31 am
Is this available only on Schwab's desktop software? Or also on their website?
Thanks for sharing your detailed analysis.
This is on Streetsmart Edge , newer trading platform
Posted by hatefalseweight on 5th of Jan 2015 at 11:43 am
They've been plodding along trying to integrate options express and build out a better trading platform. They finally got 3+ legged option spreads available and I noticed there conditional order trade. This is extremely useful to buy reversals of the usual tapouts before something continues higher like the precious metals have been doing the past week (or vice versa). Streetsmart edge is a separate platform you'd have to download from their main site.