ATOM - Trailing Stop - TSTP

Overview

The idea behind Trailing Stops is to automatically have your stop order trail the market and lock in profits as the market trades in your favor.

For instance, choosing TSTP as the stop order type and setting the stop value to 8 ticks creates a trailing stop order that gets entered 8 ticks from your entry price and then the order will automatically adjust its price to lock in profits as the market moves in your favor. 

Using the example above, if your initial trailing stop order is place 8 ticks from entry and the market moved in your favor by 4 ticks, your stop order would adjust 4 ticks. If the market continued to move against you, then the trailing stop would be triggered for a 4 tick loss. While it is never fun to have a losing trade, trailing stops allow you to protect profits or not lose as much in losing trades.

Trailing stops use a proprietary algorithm to trail the market that is based on the bid price, ask price, and last price. Setting the stop to 8 ticks will set the order to trail the market by 8 ticks, however, sometimes it might be a tick or 2 different based on how the market is trading.

Stop

Represents the number of ticks the stop loss order is entered from entry and uses the stop strategy chosen in the Stop Order drop down. Ex.  A value of 8 will submit a stop loss order 8 ticks from the entry price.  

MarketDelta Cloud utilizes advanced trading logic to easily create powerful strategies to automate the entry of trades. When a trade is initiated the selected ATOM strategy will automatically submit and work orders on your behalf, allowing you to easily manage orders and have them submitted much faster than otherwise possible.

The most common strategy is a "bracket" order where your position is bracketed by a profit target and stop loss order. When either gets filled the other gets cancelled. See How to Create a Bracket Order.

ATOM orders reside server side which is very beneficial because of speed and reliability. You do not have to have the software open for your strategies to work.

 

Settings

To view, create, or edit ATOMs just click your initials in the top right corner then click Settings. Click the ATOM tab.

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How to Create a New ATOM Strategy

  1. Click the + Add link on the ATOM settings page.
  2. Turn on each leg you want to be present. This controls how many sets of orders get submitted.  MarketDelta Cloud supports up 3 legs. 
  3. Each leg has a number of parameters you can specify. See below for a complete description of each. Settings are automatically saved to the cloud.
  4. When done, go back to a DOM or Trade ticket you the new ATOM will be available in the dropdown list.

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ATOM Parameters

Legs

A leg is an order or set of orders that are linked. If both the Profit Order and Stop Order or turned "on" then they are linked. If only one is "on" then the order works alone and is only linked to the order that initiated it. Here are 3 scenarios.

1) Automated Profit Target - Upon initiating a position, a profit target order is automatically submitted x ticks from entry. The Profit field specifies the number of ticks the profit order is placed from entry.

2) Automated Stop Loss - Upon initiating a position, a stop loss order is automatically submitted x ticks from entry. The Stop field specifies the number of ticks the stop loss order is placed from entry.

3) Bracket Order - Upon initiating a position, a profit target order AND stop loss order are automatically submitted a specified number ticks from entry. The profit target and stop loss are link as an OCO (one cancels other). If the profit order gets filled, the stop loss is immediately and automatically cancelled. The opposite is true if the stop loss order is filled first.

Max Qty

This is the order quantity for each leg. You might choose to exit the entire position in the first leg, or turn on multiple legs to exit the position a little bit at a time. Values can be typed or use the + or - buttons.

Profit Order

When On this submits a limit order x ticks from entry and serves as the profit target. When Off no profit target order is submitted.

Profit

This is where you specify how many ticks away from entry the profit target is placed. Ex. Setting a value of 10 will automatically submit an exit order 10 ticks away from entry for the quantity specified for this leg. This strategy does not submit a stop loss order, only profit target.

Strategy Tip - See how to build a profit order strategy

Stop Order

When On this submits a stop loss order x ticks from entry using the order type specified in the dropdown. There are 4 types, each described below. 

 STP - STOP - This is a standard stop order. It submits a stop loss order the specified number of ticks from entry price. Ex. A setting of 10 submits a stop market order 10 ticks from the entry price.

TSTP - Trailing Stop - This stop strategy submits a stop loss order the number of ticks specified and then continually adjust the stop loss order as the position moves in your favor using a proprietary algorithm to trail the market. The stop loss order only moves if prices moves in a favorable direction. Strategy Tip - See how to build a stop order strategy

DSTP - DOM Triggered Stop - DOM triggered stop orders behave like a stop order but do not trigger until the bid or ask quantity is less than or equal to the Inside Market Threshold which you set.  So there are 2 parameters to set for DTSP. The distance in ticks the stop order gets place and the inside market DOM threshold. Ex. The Stop amount is 10 and the amount in parenthesis is 100. This would submit the DSTP order 10 ticks from entry AND then require the inside market (best bid or best ask) become a value less than 100. DOM triggered stops are fully synthetic and supported on all Exchanges. 

DTSTP - DOM Triggered Trailing Stop - The same in all respects to DSTP orders but these also have a trailing component which behaves exactly like the TSTP order.  

 

 

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