Automatic Exit Strategy

Modified on Tue, 31 Oct 2023 at 06:07 PM

Exit Strategy is a semi-automatic position management function that allows you to focus on trade instead of focusing on placing orders. For example: using exit strategies, you can preset Stop Loss and Take Profit before entering the position. You can also set the terms and conditions of automatic move of the stop to breakeven and trailing stop that will move the price, protecting your profits. These rules allow you to build your individual trading technique.


IMPORTANT! Exit strategies use orders that the user opens via ATAS. If the order was not opened by ATAS, this order will not be processed by the strategy. Thus, if a position is opened through the ATAS with the enabled strategies, it must be accompanied by ATAS as well. Otherwise, the work of an exit strategy will be broken.


If you are using Exit Strategies, your orders will be sent to the exchange server, but they will not be automatically tracked or cancelled. To make sure tracking/cancellation works correctly, your PC should be connected to internet and your trading account should be connected to ATAS.


The advantages of using the Exit Strategy:

  • Reduced probability of error in order management.
  • Speed (sending and changing orders by the computer is significantly quicker than by the human).
  • Discipline (less likely to deviate from your trading plan).
  • Full consistency with your trading strategy.
  • Reduced emotional impact.

* Exit Strategy function is available both from the Chart trader menu (when trading from the graph), and from the Smart DOM.


To activate the Exit Strategy function:

Open Chart trader, then, in the Exit Strategy module, click on+button. List of available strategies will open:


This window has 4 strategies available:

1. Choose the strategy you want.

2. Set up its parameters.

3. Click Add.


If you have an open position and theActivate by zero positioncheckbox is checked, the strategy will place protective orders after you close the position.

If you have an open position and theActivate by zero positioncheckbox is NOT checked, then the strategy will immediately place protective orders.

Take profit meansto take profit . It limits the possible amount of profit.

Stop loss is an order that limits the amount of losses.


*Strategies description:


1. Stop Loss &Profit Target(SL& TP) –This exit strategy automatically sets protective Stop Loss and Take Profit OCO orders.

Parameters:

Stop Loss – Stop Order offset (in ticks).

Profit Target – Take Profit Order offset (in ticks).


* If the strategy is on and the open position size is increased by a user, the size of the OCO orders increases respectively (scaling in). If one of the orders is cancelled or executed, the second OCO order is deleted (scaling out). When the position is flattened, both orders get cancelled automatically. When one of the orders is moved manually, the link between the two orders remains.

Example: A buy, entry price = 100, price step = 1, Stop Loss = 10, Take profit = 10. The strategy will set take profit at the price of 110 and stop loss at the price of 90.

2. SL, TP, Breakeven –This strategy, in addition to SL and TP orders, also moves your Stop Loss to a breakeven point when certain profit has been achieved.

Parameters:

Stop Loss – Stop Order offset (in ticks)

Profit Target – Take Profit Order offset (in ticks).

Breakeven – profit amount (in ticks) at which your Stop Loss OCO Order will be trailed to breakeven.

Breakeven Offset – breakeven offset (in ticks).

For example: Buy, Entry Price = 100, Price Step = 1, Breakeven = 10, Breakeven Offset = 1. When position profit gets equal or greater than 10 ticks, Stop Loss will be moved to the price 101.

3. SL, TP, Trailing –This strategy, in addition to SL and TP orders, keeps trailing the Stop Loss order by a specified step, when the price goes to profit.

Parameters:

Stop Loss – Stop Order offset (in ticks)

Profit Target – Take Profit Order offset (in ticks).

Trailing Stop – Trailing Stop offset (in ticks)

Trailing Step – Trailing Stop trailing step (in ticks)

For example: Buy, Entry Price = 100, Price Step = 1, Trailing Stop = 10,Trailing Step = 5, Stop Loss = 7

Initially Stop Loss is set at the price 93.

When the price exceeds or becomes equal to 110, your Stop Loss order will be

moved to the price 98. Next, when the price reaches 120, the Stop order will be moved to 103, etc.

4. Multiple SL &TP - The strategy is designed for more flexible setting of automatic Stop Loss and Take Profit for an open position - allows you to place protective orders at several price levels.

Parameters:

Protection levels - adding levels and setting Stop Loss and Take Profit.

Example: A buy with a volume of 2 contracts, entry price = 100, price step = 1,

Protection level 1: Quantity 1, Stop Loss = 10, Take profit = 10.

Protection level 2: Quantity 1, Stop Loss = 20, Take profit = 30.

The strategy will place the first level protective orders: take profit at the price of 110 and stop loss at the price of 90 and the second level protective orders: take profit at the price of 130 and stop loss at the price of 80.

General settings for all strategies:

Activate by zero position - when this option is activated and you

  • have an open position, the strategy will place protective orders only when you close the current position and open the next one.
  • add the strategy to a chart which has limit or active stop orders, the strategy will not be automatically activated
  • try to activate the strategy manually, you must confirm the activation of the strategy.


Trade only with the guaranteed average price - in some cases, the platform cannot guarantee that the average position price will be correct (this is true for trading connections: Quik, SmartCom, Transaq, Plaza2 when not all necessary trades have been received from a trading connection to make a calculation). Using a strategy with a non-guaranteed average price may result in placing protective orders at incorrect prices. Deactivate this option if you understand and accept all possible associated risks.

Time in Force - selection of thelifetimeof protective orders. DAY - until the end of the current trading session or activation by the price and Good Till Cancel - until manually canceled or activated by price.

Auto-cancel orders option:

In case of strategy deactivation by switching to another strategy or to theNonemode with enabled auto-cancel orders option, all pending orders (Stop-Loss, Take-Profit) in this particular strategy will be automatically canceled.

If this option is disabled, accordingly all pending orders (Stop-Loss, Take-Profit) of this particular strategy will remain active, but independent from each other and from the position.

If you need to change the parameters of one of the created exit strategies, choose it from the drop-down menu, stop and click the gear symbol near it.



Strategy settings window will open,where you can edit the strategy parameters.




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