Conditional orders anchored to fill price?

Discussion in 'Automated Trading' started by killATwill, Sep 21, 2019.

  1. Anyone know if it is possible in IB or any platform to create conditional orders where limit price of a secondary order are set based on the fill of a market order executed earlier?

    For example, if market order A fills at at price X, then automatically order B with a limit price of Y, based on the previous fill price X?
     
  2. heispark

    heispark

    OCO bracket orders? That's a common feature of major platforms......
     
  3. Thanks. For most OCO orders where the contingent (secondary) order is a limit order, the limit price must be set ahead of time no? Not dynamically set once the first order is filled?
     
  4. patrickrooney

    patrickrooney Sponsor

    killATwill likes this.
  5. guru

    guru

    In IB system, you can use bracket orders and play with these settings in configuration / Order Presets:

    upload_2019-9-23_8-6-58.png
     
    killATwill likes this.
  6. @patrickrooney @guru

    Thanks, super helpful.

    Can the user set the limit price of the second part of bracket order as percentage of the first fill? (As opposed to a fixed increment above or below the fill?)
     
  7. patrickrooney

    patrickrooney Sponsor

    The TT Bracket order won't do that but that's a fairly easy algo to build. You could create that order type on TT without a great deal of effort.
     
  8. Thanks for the response. Are you a programmer?
     
  9. patrickrooney

    patrickrooney Sponsor

    No, I am not a programmer but I build algos all the time. ADL (algo design lab) allows you to stretch together chunks of proven code. Gives you the ability to create unique algo strategies without writing code.

    jumboog.png
     
  10. KAISER

    KAISER

    bracket orders are actually not working (at least for me)
    no platform -as many as I know- can assure the execution exactly at the bracket’s upper or lower rates.

    on all platforms/softwares, bracket order only triggers another buy/sell order to close your open position.
    there is no guarantee on the bracketed levels as contrary to generally advertised.


    example;
    you have a stock that you buy at $100
    you set the bracket at [90-110]
    that’s is your position will be closed either at -10(loss) or +10(profit).
    lets say the market hits 110,
    there is another order triggered to sell your stock.
    due to time gap between
    the market rate hits 110 and your sell order is triggered,
    your execution rate almost never happens EXACTLY at 110, it can be more or less than this.
    so, your open position will never be closed at 110 as you may want to see.


    if there is any platform that guarantees execution at EXACTLY at bracket’s lower or upper levels,

    let me know, would be happy to test.
     
    Last edited: Oct 27, 2019
    #10     Oct 27, 2019