Smarter Stops - Price and Volume Thresholds

Discussion in 'Automated Trading' started by CyborgTrading, Oct 12, 2009.

  1. CyborgTrading

    CyborgTrading ET Sponsor

    Smarter Stops

    There is almost a magical tendency for the market to trade specifically to your stops, hit them to get you out and then instantly turn around to do exactly what you wanted it to do. Somehow your stops alone will get triggered on some ridiculous print and there is nothing more frustrating and enraging.

    The answer is smarter stops.

    With Cyborg you can easily attach and continually customize price and volume thresholds on your stop orders for unprecedented accuracy and flexibility.

    Depth Threshold

    Cyborg offers the option to set threshold criteria for your stops. This simply means that the stop will not necessarily be triggered once the market reaches the trigger price. Instead, the trigger will wait until the amount of advertised liquidity at the price drops below the amount you've specified. For example, if a threshold is set to 25, then the stop won't be triggered until the number of shares on the associated bid or offer drop below 2500. This prevents those stop hunting 100 share prints from kicking you out of your position. If a price level continues to refresh and never drops below your specified threshold, thousands of shares can print and you won't get kicked out of your position either.


    The OptiThresh function offers an alternative to choosing a static threshold size. OptiThresh registers the amount of advertised liquidity when the trigger price first reaches top of book and triggers your stop after a specified percent of the initial liquidity has disappeared. For example, if OptiThresh is set to 50% and there were 500 000 shares advertised when the trigger price first reached top of book, the stop will fire when there are 250 000 shares left. The same stop will be triggered when the 500 shares threshold is broken if the top of book initially advertised 1000 shares. With OptiThresh, the same stop can be used on very different stocks with no adjustments necessary.

    Volume Filters

    A volume filter will prevent the stop from being triggered until a specific number of shares are printed at the stop price. The purpose of a volume filter is to prevent stops from being triggered when liquidity is simply pulled or canceled, as opposed to printed. The distinction becomes especially important when trading stocks with larger spreads, because the top of book price can routinely move well beyond a trigger price and return without a single share print. The volume trigger is of course completely customizable.

    Endless Easy Customization

    All these trigger conditions can be seamlessly combined to work together on one stop. For example, a stop can be set to go off if the size on the bid drops below 10 000 shares and at least 2000 shares have been printed, or the size on the bid has been reduced by 70% and at least 2000 shares have been printed. The combinations are endless and there is definitely one perfect for exactly your style of trading. For additional safety, multiple layers of conditions can be stacked on a stop in case one of the conditions is triggered and missed.

    No Programming, No Scripting

    To make life simple, Cyborg doesn't require any programming or scripting. You can customize everything from a unique, intuitive user interface. Map your stops directly to custom hot-keys to launch everything straight from your level II.

    <object width="425" height="344"><param name="movie" value=""></param><param name="allowFullScreen" value="true"></param><param name="allowScriptAccess" value="always"></param><embed src="" type="application/x-shockwave-flash" allowfullscreen="true" allowScriptAccess="always" width="425" height="344"></embed></object>
  2. MGJ


    You might want to be careful, since "SmartStops" is already a Registered Trademark in the US (see attachment below).

    Their website is here and they have some introductory videos on YouTube, such as this.
  3. i really don't think such a trademark is legally enforceable. swift trade has had them on their platform for some time, i think title too...