TheCatMan
02-03-2011, 01:03 PM
I'm an equities day trader and trade mainly during the opening 5-10 minutes. I've had problems closing positions with my broker, TD Ameritrade, during active markets. I use an ATM strategy to open the position and place a Stop Loss. Their system seems to get hung up when I move a stop when chasing the market and it prevents me from closing the position. I thought that I had the answer in using Simulated Stops.
My objective is to use an ATM strategy to open a position with a Simulated Stop in place. When the Simulated Stop is violated, a Sell Stop order to close the position would be sent to my broker.
Example:
Long 1,000 shares at 100.00
Stop Loss at 99.90
ATM Strategy Simulated Volume Trigger: 1000000
Chart Trader properties: Use stop market for stop loss orders set to True
My goal is have a Sell Stop market order submitted upon the stock trading at, or below, 99.90. I set the volume trigger high to make sure the position gets closed out. I'm concerned about a statement in another thread regarding the use of Simulated stops - “if the market trades through the price, then simulated stop is ignored”. Is the proceeding saying that a Sell Stop market order will not be be entered if the securities prices jumps down to 99.89 and never trades at 99.90? If so, any ideas on how I can attain my objective? I made several live trades this morning using Simulated Stops and everything worked perfectly. I just don't want to get into unexpected trouble if a stop price gets jumped.
My objective is to use an ATM strategy to open a position with a Simulated Stop in place. When the Simulated Stop is violated, a Sell Stop order to close the position would be sent to my broker.
Example:
Long 1,000 shares at 100.00
Stop Loss at 99.90
ATM Strategy Simulated Volume Trigger: 1000000
Chart Trader properties: Use stop market for stop loss orders set to True
My goal is have a Sell Stop market order submitted upon the stock trading at, or below, 99.90. I set the volume trigger high to make sure the position gets closed out. I'm concerned about a statement in another thread regarding the use of Simulated stops - “if the market trades through the price, then simulated stop is ignored”. Is the proceeding saying that a Sell Stop market order will not be be entered if the securities prices jumps down to 99.89 and never trades at 99.90? If so, any ideas on how I can attain my objective? I made several live trades this morning using Simulated Stops and everything worked perfectly. I just don't want to get into unexpected trouble if a stop price gets jumped.