Long Pending entries triggered at Bid

Rod_Sands
04 Mar 2015, 05:39 ( Updated at: 21 Dec 2023, 09:20 )

RE:

Rod_Sands said:

Does CTrader support the use of Bid price Buy entries and exits?

eg on a Pending Limit Buy, instead of being triggered at the Ask it is triggered at the Bid (although the actual entry would be at the Ask.  

This functionality is provided by JForex  https://www.dukascopy.com/fxcomm/fx-article-contest/?How-To-Avoid-Being-Stopped=&action=read&id=937&language=en

 

Short and Long examples pasted from the above link

● Short position

Using the previous EUR/CHF example, imagine that you wanted
to open a short position if the price dropped below 1.20000, so you had
placed a sell stop order at 1.19999. If your broker offered only the
normal stop orders which are triggered by the bid price, your order would have
been filled at 1.19954 because the bid price did get below 1.19999.
However, that was not a normal market price, so your trade is now showing a
significant loss when things got back to normal.

To avoid this situation using Dukascopy's platform, you would add the normal market spread (let's say 2 pips just to keep things simple, it is lower than that during the London and NY sessions) to the bid price you want (1.19999), and place a sell "ASK ≤ Stop" order of that sum: 1.20019.

                                                              Opening a short position

So only if the ask price dropped
to or below 1.20019 the order would have been triggered. This didn't
happen because the ask price rose to 1.20275 during the volatile period,
so you were no way near of having your order filled.

If the prices later
dropped to 1.19999/1.20019 then your order would have been
filled at 1.19999, short positions are always filled at the bid, irregardless
of the order type you use.

● Long position

To open a long position (when the price reaches 1.20200, for example) the process is even simpler, because you don't need to include the spread. Simply place a buy "BID ≥ Stop" order of 1.20200 and your order would be filled at around 1.20220.

                                                              Opening a long position

As you can see it also would not have
been triggered during the high volatility period. Note that long positions are
always filled at the ask, irregardless of the order type you use.

► How to correctly place
stop-loss orders

You are long EUR/CHF and want to close the position if the
price drops below 1.20000, so you placed a normal stop-loss order at 1.19999.
The market goes wild for a few seconds, the bid price reaches 1.19954
and you are stopped-out. Again, using the proper order type would have avoided
this situation. To correctly place a stop-loss on a long position, you need to
do exactly the same as if you wanted to open a new short position. Add the
normal market spread  to the bid price
you want (1.19999), and place a sell "ASK ≤ Stop" order of that sum: 1.20019. You would not have been
stopped-out.

If you are short and want to close your position
if the prices gets to 1.20200 simply enter a buy "BID ≥ Stop" order of 1.20200,
it would be filled close to 1.20220. This order would not have been
triggered either.

Spotware
04 Mar 2015, 17:54

No, there is no such functionality in cTrader. However you can write a cBot with similar functionality.

Rod_Sands
05 Mar 2015, 13:10

RE:

Spotware said:

No, there is no such functionality in cTrader. However you can write a cBot with similar functionality.

A cBot is not a viable solution due to the consequent time delay, requirement to run it on a VPS and the possibility that it will fail, which would leave a position without a stop etc

Hence my suggestion that Spotware CTrader implement the functionality in cTrader, similar to that available in JForex.

.

Spotware
09 Mar 2015, 10:53

Thank you for your suggestion, we will consider it. Additionally, you can post this idea to vote.spotware.com.

Rod_Sands
11 Mar 2015, 08:26

RE:

Spotware said:

Thank you for your suggestion, we will consider it. Additionally, you can post this idea to vote.spotware.com.

Unfortunately I've run out of Votes