Author Topic: Custom Alerts  (Read 10571 times)

beardance

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Custom Alerts
« on: November 11, 2012, 04:29:21 pm »
Hi
Just some general questions on strategies after one has a custom formuala.

1.  Once an alert is triggered, do you suggest bidding or offerning or placing a market order?
2.  If the average Win is lets say 0.35 and the average loser is -0.18 do you place an on stop 0.18 cents away from your entry?  Any other strategies people use based on this data?

thanks

TradeIdeas1

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Re: Custom Alerts
« Reply #1 on: November 14, 2012, 12:27:39 pm »
There are different ways to approach it.  If the strategy has small average spreads then I would suggest using market orders to get in and out.  That way you will for sure be in the trade.  However if you are playing the spread game then using limit - delta orders is the way to go.  There are two ways to do that, if you are being conservative then place a limit order delta - so that you are x cents below the bid at the time of the alert.  If you want to increase your chances then place the limit + delta at x cents to be between the spread or close to offer.  If your average loser is 18 cents that is a decent high level assumption for creating a stop, but I would test that with the OM to make sure that is holding up.  Sometimes during periods of higher volatility what will happen is you will be stopped out of everything.