Multi-level Bracket Order
Multi-level Bracket Orders submits multiple stops and targets for an entry order as defined in the template. User can further assign a stop strategy and trail the stop.
Please follow the below steps to define a new Cover Order.
The Multi Level Bracket Order template allows user to define a stop strategy so that user can trail the stop. The stop strategies are defined in a template and just like the order templates user can reuse it and can simply assign a template as needed. A stop strategy template has three parameters, namely
Note - All values of the stop strategy template are in Ticks.
Please follow the below steps to create a stop strategy template:
Now you can simply assign the newly created stop strategy template from the drop-down menu from the column 'Stop Manager'
Let us illustrate with some examples:
The stop strategy template is defined as below:
Now assuming the tick size of the instrument as 0.05, and your average entry price is 100.00, then when price breaches the profit trigger price of 101.00 (100 + 20 * 0.05 = 101.00) the stop will be modified to 100.00 (101.00 - 20 * 0.05 = 100.00)
Now the frequency is defined as 10 ticks, thus when price breaches 101.50 (101.00 + 10 * 0.05 = 101.50) the stop will be further modified to 100.50 (101.50 - 20 * 0.05 = 100.50). The stop will be further trailed when price breaches 102.00 (101.50 + 10 * 0.05 = 102.00). At this point the stop price will be 101.00 (102.00 - 20 * 0.05 = 101.00). The process will repeated until the target is reached or the stop is filled.
Assuming the tick size of the instrument as 0.05, and your average entry price is 100.00, then when price breaches 102.50 (100 + 50 * 0.05 = 102.50) the stop will be modified to 100.50 (102.50 - 50 * 0.05 = 100.00). Now since the frequency value is set to 0 (zero), the stop order will no longer get modified.
A note of caution, please be judicious while setting the parameters of the stop strategy. Most API's has throttling policies and too many modifications (of the stop order) can result in disablement of API access by your broker.
Please read the below points to know more about the functioning of the Multi-level Bracket Orders. Please do note the below list is not exhaustive. There may be scenarios in addition to what listed below
The OCO link as displayed in TWS (Interactive Broker)