Breakout Down/Fade Strategy

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Breakout Strategy on the chart
Breakout Strategy in the DOM window

This strategy is a combination of the breakout and fade strategies defined above, and it is used when the trader expects the price will go down. This strategy will place a sell stop order below current price and sell limit above current price. The breakout can be activated if it happens, but also catch the fade if the price rises.

Appearance

Breakout down/fade strategy orders are displayed as dark cyan markers on the chart connected to the order price labels on the price scale with a dotted line and as dark cyan markers in the DOM window.

For the chart window, default Breakout down /fade strategy order markers color and connecting line length can be modified in Format Chart Trading menu.

For the DOM window, default Breakout down /fade strategy order markers color can be modified in Format Colors menu.

Creating Breakout Down/Fade Strategy orders

Create Breakout down /fade strategy orders by one of the following methods:

  • Drag-and-drop the Breakout Down/Fade Strategy icon BDFS.png to the chart; or:
  • Drag-and-drop the Breakout Down/Fade Strategy icon BDFS.png to the DOM window; or:
  • Right-click at the desired price level on the chart to see the shortcut menu, select Place Order and then click Breakout Down/Fade Strategy; or:
  • Right-click at the desired price level on the DOM window on the Sell or Buy columns to see the shortcut menu, select Place Strategy and then click Breakout Down/Fade Strategy; or:
  • Right-click the Breakout Down/Fade Strategy icon BDFS.png in the Place Order menu to see the shortcut menu and click Apply Strategy.
  • Double-click the Breakout Up/Fade Strategy icon BDFS.png in the Place Order menu.

Breakout Down/Fade Strategy Parameters

To modify default Breakout Down/Fade strategy parameters:

  1. Right-click the Breakout Down/Fade Strategy icon BDFS.png in the Place Order menu to see the shortcut menu.
  2. Click Edit.
  3. Modify Breakdown and Upper limit levels in Upper Limit At and Breakdown At boxes.

Breakdown and Upper limit levels are interrelated with price offsets. You may modify either level or the price offset.

Click the Price Level button or the Price Offset button to switch between entry modes.

Price offsets can be indicated as ticks or %. To change indication type, click the Tick/Percent button.

Click More Parameters >> to show Qty and Time In Force fields (for more info see Setting Order Quantity and Time in Force sections).

Saving as Template

To save the parameters as a template:

  1. Open Strategy Parameters window by one of the following methods:
    • Right-click the Breakout Down/Fade strategy icon BDFS.png in the Place Order menu to see the shortcut menu, then click Save as Template; or:
    • Click on the Save as Template button in the Place Strategy window when applying the strategy.
  2. Modify default Breakout Down/Fade parameters.
  3. Click Save.
  4. Choose the Breakout Down/Fade Template icon.
  5. Enter Fade template name.
  6. Click OK.