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feng2088

How Do I Manage to Close a Position

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Hello all,

 

I always wanted to trade with more than 1 emini contract. My system would buy in with market price and sell to close the position when target price hits. I wouldn't have any problem getting my order filled, but exiting the trade would be hard since I use limit order and have more than 1 contract in the position.

 

How would your guys handle this? lets say if you are trading 3 contracts and the profit target hits. Only 1 contract gets sold and you still have 2 open. The profit target may hit again in next bar or two bars later, but you never know. It may never hit again. How would you close this trade? I am thinking if one contract gets sold and the other two are still pending after 10 mins, I will close the position by selling at market price. I know this is not the best option, but what do you think? How could you code this? Thanks!

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Hello all,

 

I always wanted to trade with more than 1 emini contract. My system would buy in with market price and sell to close the position when target price hits. I wouldn't have any problem getting my order filled, but exiting the trade would be hard since I use limit order and have more than 1 contract in the position.

 

How would your guys handle this? lets say if you are trading 3 contracts and the profit target hits. Only 1 contract gets sold and you still have 2 open. The profit target may hit again in next bar or two bars later, but you never know. It may never hit again. How would you close this trade? I am thinking if one contract gets sold and the other two are still pending after 10 mins, I will close the position by selling at market price. I know this is not the best option, but what do you think? How could you code this? Thanks!

 

if you are trading in the direction of the "main" trend, then I would be patient and wait for price to come back to your target. If you are trading counter to the main trend and you do not get filled on all the contracts of your target, then just bail. Presumably, you are not trying to catch the move to the tick so if you are counter trend and you didn't get filled, there is a good chance that it won't make it to your target again.

 

MM

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Hello all,

 

I always wanted to trade with more than 1 emini contract. My system would buy in with market price and sell to close the position when target price hits. I wouldn't have any problem getting my order filled, but exiting the trade would be hard since I use limit order and have more than 1 contract in the position.

 

How would your guys handle this? lets say if you are trading 3 contracts and the profit target hits. Only 1 contract gets sold and you still have 2 open. The profit target may hit again in next bar or two bars later, but you never know. It may never hit again. How would you close this trade? I am thinking if one contract gets sold and the other two are still pending after 10 mins, I will close the position by selling at market price. I know this is not the best option, but what do you think? How could you code this? Thanks!

 

you have to pay attention to the DOM...

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I am thinking if one contract gets sold and the other two are still pending after 10 mins, I will close the position by selling at market price.

 

What time frame are you trading? If your price target was hit, and you only got a partial fill, I would immediately exit the other contracts at a lower profit.

 

The issue is about whether you believe in the trade or not, and why. Believing in the trade is not about hope, or a feeling, . . . . is there a real reason? Can you explain in specific terms why you still believe in the trade?

 

If the target was hit, and you still believe in the trade, then why not just exit, then re-enter at a better price? If you are not willing to do that, then I do not believe that you believe in the trade. If you really, really believe that your target will be hit, and price retraces against you, then you should lock in profit, then re-enter at a better price. Why would you not do that?

 

That is what seems rational and logical to me. It doesn't seem logical to intentionally pass up an opportunity to lock in profit, and then get back in at a better price.

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Thank you guys!

 

MightyMouse: I am actually trading counter to the main trend. I back tested the system with 5-yrs historical data. The profit factor was about 2 and percent profitable was about 80%. I observed the chart and most of the time my order did get filled. However I still want to limit the risk. I believe closing the entire position if I don't get filled on all the contracts of my target is the best option for me.

 

Tams: not sure if you are quant trader, but you are smart as hell in coding strategies :) what is DOM?

 

Tradewinds: I am trading the 5 mins charts with the daily chart. ( counter to the main trend) ..Do I believe in my trades? I do, but I just want to play safely. If I bail after one contract got filled, my other contracts would still make money.

 

Can you guys give me an idea how to code this? Does Tradestation have any reserved words for position size? ContractSize? Thanks! Enjoy your weekend!

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what is DOM?

 

Depth of Market.

 

Depth of Market Definition

 

I believe that the Depth of Market and a Trading Ladder are two different things. But, the Depth of Market can be shown on a Trading Ladder. I make this point because I found the use the term "Trading DOM", and "Trading Ladder" confusing, and didn't really understand what the difference was.

 

Most trading ladders probably have Depth of Market built into them, but Depth of Market isn't the Trading Ladder. And Depth of Market doesn't have to be shown on a trading ladder. It could be shown by itself in a table. That's my understanding, somebody please correct me if I'm wrong.

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Hello all,

 

How would your guys handle this? lets say if you are trading 3 contracts and the profit target hits. Only 1 contract gets sold and you still have 2 open. The profit target may hit again in next bar or two bars later, but you never know. It may never hit again. How would you close this trade? I am thinking if one contract gets sold and the other two are still pending after 10 mins, I will close the position by selling at market price. I know this is not the best option, but what do you think? How could you code this? Thanks!

 

how to code it is out of my jurisdiction.

However be consistent - if you put a time limit on it, or have a trailing stop - possibly the simplest option - then always do this every time. Some will win, some will loose. To say selling at the market after ten minutes is not the best option - why? you are out, and you can always get back in.

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