question on Buy Stop Limit and automated trading

[DoveforUsAll]

from the Help Guide:

Buy Stop Market Example
Order Type - Buy Stop Market
Stop Price - 1000
Volume Trigger - 500
This example will trigger once the market trades at a price of 1000 and the ask volume is less than 500 contracts.


Hi,

I posted a post in another thread, but this is more relevant here.

This feature seems very potentially helpful, and I'd like to understand what it is exactly.

Does "bid volume" refer to the Level2 bid size, or the volume of shares traded at the bid?
I had been assuming the Volume variable was a criteria of a minimum number of shares needed to trade past a stop price, in order to execute the stop (such as "only stop-out if there are 500 or more shares traded past the stop level). The page also states "Delay the triggering of a stop market or stop limit order (prevent having your position stopped out prematurely due to a quick drop and pop into your stop loss price level)."

The above wording though states the volume crieria as a maximum, which makes me think I am not understanding correctly, or possibly the "less than" is supposed to be "greater than".

Iawait your kind help and enlightenment...

Jon
When there is suffering
There are causes of the suffering
And we can reduce the suffering
by choosing specific efforts that will reduce those causes,
...and replacing them with the causes of happiness
-4 Noble Truths

"Face directly what truths you want to avoid, and fears and discomfort will be transformed into doors of liberation"

[NinjaTrader_Ray]

- level2 bid size

[DoveforUsAll]

thank you. let me see if I understand..

So
Buy Stop Market Example
Order Type - Buy Stop Market
Stop Price - 1000
Volume Trigger - 500
means...
that if the price of 1000 is traded at, and the best-ask size is less than 500 shares, the order would be triggered?

Am I understanding this correctly?

If so, is there also a feature that will trigger an order only if 500-or-more shares have been traded at, or past, the limit price?

thanks...
Jon

[NinjaTrader_Ray]

Your understanding is correct.
There is no feature that will do what you would like.

Ray

[DoveforUsAll]

Thanks Ray,

Now that I understand that part, my next question is if the Volume Trigger can be applied to a limit order alone.
For example, if I am using TradeStation for trade signals and a buy signal is generated, can NT be set to only execute the signal if the size on the best ask is less than 500 shares?

Jon

[NinjaTrader_Ray]

Just stop orders.

[DoveforUsAll]

It's a great feature. If you can add it to entries also... it would be very powerful.

thanks for the education on how this works...

Jon

[NinjaTrader_Ray]

You can use it for entries, right click, Simulated Order

Ray

[DoveforUsAll]

..thank you