Let say you have a short position of 5 and will there be a difference between
1) "buy to cover 10 contracts at next bar"
2) "buy 10 contracts at next bar"
What the difference between buy and buy to cover?
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- virginiatrader
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Re: What the difference between buy and buy to cover?
maisatomai:
If you are speaking about the order keywords that can be coded and executed in MC, to "buy" is to initiate a new LONG position, i.e., to go long a security or contract.
"buytocover" is also an order keyword that can be coded and executed in MC, and will result in closing or offsetting a open SHORT position, so that your account is flat for that security or contract.
In MC, you "buy" and "sell" your longs, and "sellshort" and "buytocover" your shorts.
Good trading!
virginiatrader
If you are speaking about the order keywords that can be coded and executed in MC, to "buy" is to initiate a new LONG position, i.e., to go long a security or contract.
"buytocover" is also an order keyword that can be coded and executed in MC, and will result in closing or offsetting a open SHORT position, so that your account is flat for that security or contract.
In MC, you "buy" and "sell" your longs, and "sellshort" and "buytocover" your shorts.
Good trading!
virginiatrader
Re: What the difference between buy and buy to cover?
Let say you have a short position of 5 and will there be a difference between
5 contracts are bought to close out short position. Result: flat1) "buy to cover 10 contracts at next bar"
5 contracts are bought to close out short position. 10 contracts are also bought to go long. Result: 10 contracts long2) "buy 10 contracts at next bar"
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Re: What the difference between buy and buy to cover?
Thanks for the replies.
1) So if you are short 11 and you have a code
,
will you get a flat position?
2) if you are already long 3 and you have a code
,
will you get position of +5 or +8?
Actually I want to trade a strategy that need these and that is why I am asking.
1) So if you are short 11 and you have a code
Code: Select all
buy to cover next bar at market (note no contract size is input)
will you get a flat position?
2) if you are already long 3 and you have a code
Code: Select all
buy 5 contracts next bar at market
will you get position of +5 or +8?
Actually I want to trade a strategy that need these and that is why I am asking.
Re: What the difference between buy and buy to cover?
Code: Select all
Buytocover this bar
Code: Select all
Sell this bar
However, if your Buytocover or Sell lines specify LESS contracts than your position, they will only fill that specified amount. If you specify MORE contracts than your position, they will flatten your position with no residual.
Re: What the difference between buy and buy to cover?
I'd suggest writing out some test execution code to ensure you understand this process. This will get you started:
Code: Select all
//Buy and SellShort are ENTRY commands
//Buytocover and Sell are EXIT commands
if MP[5]{[5] for example}<=0 then
Buy 10 contracts this bar ;
if MP[5]{[5] for example}>=0 then
Sellshort 10 contracts this bar ;
if MP<=0 then
Buytocover 2 contracts this bar ;
if MP>=0 then
Sell 2 contracts this bar ;
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- Andrew MultiCharts
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Re: What the difference between buy and buy to cover?
Hello maisatomai,
The following links should be helpful for you:
The following links should be helpful for you: