Stop and Reverse strategies  [SOLVED]

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Guest

Stop and Reverse strategies

Postby Guest » 13 Feb 2007

Hi,

In TS, when you use a "Stop and Reverse Strategy", you must send two orders. Ex if you are long +100 you must sell -100 and then sell short -100.
Concerning fees, it is better to sell short -200.

Do MC act the same way as TS ?
If yes, is there a solution to reverse a position with one order.

Thanks

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Kate
Posts: 758
Joined: 08 Dec 2006

Postby Kate » 13 Feb 2007

MultiCharts works the same way as TS. In your case use "Sell short 100". The "Sell short" command will reflect your final net position. This means that "Sell short 100" will close your long position (no matter what is long position size) & sell short 100 contracts simultaneously. So your final net position will be -100.

Guest

Postby Guest » 13 Feb 2007

Sorry, let me be more specific.
If I am long +100 and want to become short -100.
Do MC send 2 orders ( one to close the long and one to be short -100 ) or just one ( sell short -200 ) ?
I am talking about automated trading ( with IB for instance ).
TS is sending two orders in this case and that is not good concerning fees ( for the customer of course not for them !)

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Kate
Posts: 758
Joined: 08 Dec 2006

  [SOLVED]

Postby Kate » 14 Feb 2007

Actually, one order is sent to IB. For example, if we have +100 contracts (long position) and want to enter -200 contracts (short position), a single order (-300) will be sent.

if currentbar=1 then buy this bar 100 contracts at close;
if currentbar=2 then sell short this bar 200 contracts at close;

User avatar
Kate
Posts: 758
Joined: 08 Dec 2006

Postby Kate » 14 Feb 2007

Actually, one order is sent to IB. For example, if we have +100 contracts (long position) and want to enter -200 contracts (short position), a single order (-300) will be sent.

if currentbar=1 then buy this bar 100 contracts at close;
if currentbar=2 then sell short this bar 200 contracts at close;


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