Stop Trigger Function, STF

#1

Hi Darrell,

I have a question on the Stop Trigger Function. I have set it up before and set my worst limit and then my trigger gets hit but the loss is higher than my worst limit so it doesnt trigger. So the other day I adjusted it and gave it lots of room. So for example I had a buy, and I put my stop in for sellback at $15 for worst limit, the stop triggered and it was a sellback at $16 - I was testing to see what would happen.

How can I better manage it? Is there a way to set it so it triggers and so the loss isnt so great? What am I missing here? Or, do I just have to really manage the stop triggers too to keep my risk in check?

Thanks! Kellie

#2

The worst limit is the worst limit price you want the stop trigger function to submit your limit order at. ie say i buy at 60 i probably don’t really want to get out at $4.00 At that point personally i would just want to stay in the trade.

So really that is what the worst limit is for. It is for what is the worst limit you are willing to take or just don’t fill me if your not going to fill me at this price.

i.e. i won’t buy for a $ more than x price

i won’t sell for a $ less than x price

(A limit order)

It will only submit the worst limit order if the tick offset of the market is greater the worst limit you have chosen.

ie say you chose 10 ticks off the binaries prices offset

And put a worst limit of say 40

The market flew down and when it hit your trigger price the market was at 30 so the offset limit was 20 (10 lower than the market) but you had a worst limit of 40 so it submitted a 40 as you said a worst limit of 40

Remember this is not about the “loss” this is about the order. Its when to submit a order whether it be entry or exit profit or loss.

To make a loss less exit sooner on the trigger. Not sure what you are looking for here.

  1. So you want to ensure that it is the worst limit you want or no fill if the market won’t fill you at that price.

  2. Use the simulator to help you know what the price will be if the market hits your trigger price. (note that price changes as time passes so check back in on it from time to time).

  3. In the last 20 minutes or so the binary price can get insanely volatile so be aware of this ie a few ticks can mean $20 difference in a binary price in the the last 5 or 10 minutes.

  4. If your not sure then do as you are stating be a bit more generous but still have a worst so you don’t get totally hosed but feel free to edit turn off the trigger and go to regular limit order at anytime.

The Stop Trigger is there to help you submit the limit order you want for entry and not worse than that or no fill if it is worse - same on exit. Its how limit orders work when you add a stop trigger to them in all markets. If the market moves past your limit it won’t get filled. If its not a limit well then you can get hosed (ie pure market no worst limit). So its good to have a combo. Hence why we have trigger, offset, size, and worst limit as triggers for when you want to submit your regular limit order.

Hope this helps…

Darrell

#3

Yes thank you that does help.

Could I increase or should I increase the market offset to say 20, to have a better chance of getting my worst limit if it flies? So if I sold at 25, and my worst limit would be 40, can I still use the 3 tick rule and set the offset to 20 to have a better chance of getting the stop filled if it flies the other way?

#4

Offset and limit have nothing to do with each other.

Worst limit goes into effect if they offset is beyond the worst limit

If you want your worst limit filled then set it further away to increase the chance.

Worst limit is not a “fill” its simply the worst price you are willing to submit the limit order.

#5

Hi Darrell How does the stop trigger function work for spreads? As an example, I BUY a spread TF 1150-1180 (4:15pm) at 1162 (so $180 profit/$120 risk). I then open same spread ticket on scanner, flip it to SELL, and use trigger of 1152 for stop loss. What should I use for worst limit? It seems no matter what I use for worst limit and trigger price, the explanation says that it will submit a SELL order for $1 above the spread floor (ie 1150.1). How do I trail my stop in this situation?

I’m trying to learn how to trade spreads using Apex Elite MVP as Darrell mentioned in a recent webinar. I would like to understand how to better use the the stop trigger function parameters to effectively trail my stops on these trades. Thanks Ed

#6

I’ve read this thread 5 times. For clarity, if i sell a binary for 20, and set the worst limit for 55, how does a price offset of 10 affect the order fill? thanks.

#7

Trigger price is when you will submit your limit order

Worst Limit is the worst your willing to submit. This is helpful because the market may become say illiquid like everyone is taking up the contracts or something weird. I dont want to get filled at 10 ticks off the market is there is some stupid market order in the market. Your worst limit is the worst price y our willing to accept a fill at. If you dont get filled at that then just let my order sit there and be working.

You trail your stop by adjusting the trigger price (and worst limit price if you so choose).

#8

This thread is talking about the stop trigger.

Teh trigger price is the underlying market not the price of the binary.

Offset is how far off the market price the limit order will submit with the indicative trigger price is hit

ie indicative is at 17807 trigger is 17808 - indicative hits 17808 market is at $20 - you have a $10 offset so it will submit a limit of $30 and you will get filled at $30 or better you put it that worst limit you want is $55 so lets say trigger price is hit and the market is at 50 and offset is 10 that would put the buy at 60 above your worst limit so it will put in the worst limit at 55 or market is at 60 10 above that is 70 but your worst limit is 55 so it will enter a 55 and it will obviously go into working orders as its above the market.