Lost Connection: Options for Automation?

[wjrusnak 10]

Platform: Tradestation 8.4

 

Alright guys, I have a system and for every trade I make, this automated system sets up a trailing stop loss for a certain amount. Now I notice that the stop loss isn't "put out there" and I don't see it in the order bar, matrix, etc., until it actually hits its mark. In any case, it works great.

 

Now the actual question is: What do I do if I lose my internet connection? Since the stop doesn't seem to be in the books and if the platform gets disconnected, I assume that my order would stay open with no stop loss. In other words: uh oh. Are there any ways to prevent this from happening (i.e. a permanent stop loss for an amount no matter what the trade, an "if disconnected do this" option...) or am I wrong and the order is already placed, just not viewed in the matrix or the top order bar? I just need some sort of security and I'm sure others have come across this issue. You have to be ready for any outcome, right? Let me know what you guys think.

 

-- Bill

[diablo272 10]

I would call Tradestation and ask them how that is handled, ie is the stop order placed on Globex as soon as your position is opened, or is the stop order only placed when certain criteria are met in your strategy.

 

If it turns out that the stop order isn't placed as soon as your position is opened, the only safeties that I know of if your connection goes out are to call the order in or to have a backup connection ready, and you'd be much better off having a second connection in that situation than you would be calling it in. A second connection is useful anyway, for the days when you start up your platform only to find that your connection is completely out, and this doesn't have to happen very often for the connection to pay for itself.

 

I should add that with my platform, Ninja, your stop order is placed on the exchange as soon as your position is opened, so even if you got disconnected, your stop order would remain open. So it's certainly possible to do, at least.

Edited February 9, 2009 by diablo272

[wjrusnak 10]

Okay. Problem Solved. I did call them and a guy explained that generally the automation stops are within the platform then sent as soon as they are triggered. Fortunately they also have the option to send the order initially to the market (as opposed to "hanging out in the platform"). Diablo, This is what you were talking about with Ninja. If anyone else has ever had this issue with TradeStation:

 

1. Right click on your chart

2. "Format strategies"

3. Click "Properties for All..."

4. Click "Automation" tab

5. Near the bottom, make sure that "Send strategy generated orders directly to the TradeStation Order Execution Network"

 

Thanks for the suggestion, Diablo.

 

-- Bill