Setting entries/ stops - trading system


12:53 @Ensign_H: I used the High/Low stop to track some entry opportunities using the tick above or below prior two bar extremes

12:54 @Ensign_H: this is the property form used for the stop trigger.

12:55 @Ensign_H: this is the alert for Entry Long..... watch Bar High and compare to the Stop Value

12:55 @Ensign_H: Stop Value was already at 1 tick above High of last 2 bars.

12:56 @Ensign_H: I used a green bar marker above the highs of the bar where this happens to verify we see the right bars for a Buy trigger, and all looks good.

12:56 @Ensign_H: The lower corner is the trade system, with an Action to Buy or Reverse Long for a quantity of 1 and use the panel B value for the entry price, which is the stop value. The value from panel A might be higher because it is the Bar High, and the entry was the stop

12:59 @Ensign_H: This is the 2nd alert added to the symbol, to watch and execute a Short trade.

12:59 @Ensign_H: similar idea as the prior alert - just the reverse

13:00 @Ensign_H: now since your scalp and your stop were the same distance from entry, a single alert (3rd in system) can be used to exit any position..... compare bar low to the Trade Value entry price - 2 ticks.

3:01 @Ensign_H: 4th and last alert does other side to exit at entry + 2 ticks

3:02 @Ensign_H: with the study and the 4 alerts in place, we can click menu Charts | Trade Detail and see this ledger of the trades.

13:03 @Ensign_H: 1st line shows a short, at 1183.25 with an exit 2 ticks lower at 1182.75 for the $25 scalp

13:03 @Ensign_H: 2nd line is a failed long, and 3rd line is a successful long

13:04 @Ensign_H: however, when I study these particular trades on the chart, I have the sequence questions I asked about before, what happened first.

13:04 @Ensign_H: part of our sequence issue is the order of the 3rd and 4th alerts - 3rd will evaluate before 4th. So it might bail out on the stop prior to seeing that the scalp also triggered.

13:05 @Ensign_H: With live trades you are better off because the confusion has not happened yet. Probably it would be best to split the 3rd and 4th into 2 alerts each

13:07 @Ensign_H: so that if short we use Last to compare to Entry - 2 ticks for scalp and use Last to compare to Entry + 2 ticks for stop since Last is a current live update

13:08 @Ensign_H: something like this would work better in real time.

13:09 @Ensign_H: Bar Close, ie current tick, is compared to Entry price -2 ticks and if we are there or beyond we Exit Short Position - that would be a successful scalp.

13:10 @Ensign_H: and invent similar new alert, same panel A, conditions A above B and A=B,

3:10 @Ensign_H: same panel B with Number .50, and same Trade to Exit Short Position.

3:11 @Ensign_H: and if you want the scalp tested prior to the stop test, then have the scalp alert higher in the chart object list and it will test first - using Close however should be fine for real time signals because a close can only be in one place at a time and both alerts could not trigger on the same calculation pass

Last updated 01/23/2005