Autopilot
Automated Trading
Market Entry
By selecting “Market Order On signal,” the Autopilot will execute an
entry order immediately upon receiving a buy or sell signal from your
chosen indicator.
The next drop down option for entering the market is the “Stop Entry or
Limit Entry on Signal.”
A Stop Entry will drop a buy stop or sell stop order into the market at a predefined number of points or pips above or below the price bar in which the signal arrow is pointing at.
Similarly, the Limit Entry order will drop a sell limit or buy limit order into the market at a predefined number of points or pips above or below the price bar in which the signal arrow is pointing at.
For example, if you have selected “Stop Entry on Signal,” and you have placed a three in the points or pip field, upon receiving a buy signal, Track ‘n Trade will automatically place your order three tics, or pips above the high of the price bar in which the buy signal is pointing.
In the case of using a Limit Entry Order, and you have placed a three in the points or pip field, upon receiving a buy signal, Track ‘n Trade will automatically place your order three tics, or pips below the high of the price bar in which the buy signal is pointing.
There are distinct advantages and disadvantages to using a Stop Entry, or Limit Entry Order.
The advantage of a Stop Entry Order is that the market may never advance sufficiently to actually continue in the trend, therefore your stop order entry would never be filled, and you would not suffer a loss.
The disadvantage is that you are sacrificing the X number of pips or tics above or below the entry price bar for this insurance, or security.
The advantage of using a Limit Entry Order is that if the market pulls back against the prevailing trend that created the entry signal, you could be filled at a better risk entry position.
The disadvantage to this strategy is that the market may continue in the overall general direction of the trend and may never retrace sufficiently to fill your entry order, and you could miss the trade altogether.
It’s important to note, if you use a very small number, such as one, there is a chance that the market may move to the specified entry price prior to giving Track ‘n Trade time to place your order with the market. If this occurs, the market will reject the order as its being placed at an invalid price; when Track ‘n Trade receives a rejected order, it does not attempt to reenter the market, instead, it waits for the next trading opportunity.
If you are worried about a market gapping in the direction of the arrow, you can use the “Gap Entry” filter, which states that if the market gaps by a user specified amount, then continue trading by entering the market with a market order. Of course these last two settings have Q-Calc. buttons to help determine the most optimal settings.