Platforms...buying breakouts, selling breakdowns

Error 404 · Dec 15, 2003

I have downloaded several different demo platforms. None have the ability to test a style I am interested in.

I would like to be able to place BUY STOP orders ABOVE the market (SELL STOPS BELOW).

In other words, say I want to be long on a breakout....so unless the market hits a price, I do not want an execution (which I would get on a limit order....I would be getting a "better" price...a price I don't want unless I get the breakout).

What I also want is to be able to place contingent orders. So (on the long side for example):

Market is at X.XX50. I want to buy if the market trades through X.XX70. Then, if executed, I want to place a STOP LOSS order at, say, X.XX50 (or wherever), and a limit order to sell half my position at X.XX90 (or wherever).

I want my stop loss for my entire position. My stop limit (profit) order for half my position. I would of course want half my stop loss order canceled if I get out on my limit (profit) order (OCO).

A trailing stop feature for my remaining half of my position would be nice as well (I could raise it manually assuming I would have time since the the position is in my favor).

Is there such a platform out there? And who is using it? Ideally I would want a platform that would have the ability to place such trades, along with a BD that has reasonable spreads/commissions. Is there such an animal?

Thanks for any help,

RS

grimer11 · Dec 15, 2003

with the VIX holding as it is, I believe your strategy, for now, is ill advised.....this market seems to punish breakout seekers.......however, eventually, parasitic people who sell volatility get destroyed in one fell swoop, and I cannot wait to hear the screams when it comes.`

grimer11

jem · Dec 15, 2003

you should check out what bracket trader does in conjunction with IB.

Nereus · Dec 15, 2003

NinjaTrader does exactly what you want... Plus, they have just released a new version (Beta version) which also alows multiple targets and stops. I really like its interface and the developer is always quick to respond to questions. Usually a 1 to 3 minute turnaround for email questions to Ray. Check it out!

http://www.ninjatrader.com

The new beta version has lots of new features... email Ray to be able to check out the beta.

Good luck to you.

Error 404 · Dec 16, 2003

Quote from grimer11:

with the VIX holding as it is, I believe your strategy, for now, is ill advised.....this market seems to punish breakout seekers.......however, eventually, parasitic people who sell volatility get destroyed in one fell swoop, and I cannot wait to hear the screams when it comes.`

grimer11

Thanks for the input. It is not a strategy I have used, and I am not sure how it would work. As I said, I just wanted to test it.

The thing is that there is a bit more to it than I talked about. I only really was interested in the ability of a platform to take these kinds of orders.

But as a former CBOE market maker, I do know that there can be some good trades playing breakouts. Maybe not now, but eventually. However, having said that, I believe with good stops, and good risk management, this kind of "buying high and selling higher" may work. Meanwhile, my 'normal" approach to trading has always pretty much been to buy dips and short run-ups. This is different (obviously), but at least worth a study.

Quote from jem:

you should check out what bracket trader does in conjunction with IB.

Thanks, I will check it out.

Quote from Nereus:

NinjaTrader does exactly what you want... Plus, they have just released a new version (Beta version) which also alows multiple targets and stops. I really like its interface and the developer is always quick to respond to questions. Usually a 1 to 3 minute turnaround for email questions to Ray. Check it out!

This sound great too. I will check it out as well as "bracket trader".

Peace Guys, and thanks for the help!!!

RS

sakimonohito · Dec 16, 2003

If you are looking specifically for a forex platform to place buy and sell stops, you can try cms-forex. I use them and haven't had any trouble with the fills for the last 9 months.

happy trades

kowboy · Dec 16, 2003

Quote from grimer11:

with the VIX holding as it is, I believe your strategy, for now, is ill advised.....this market seems to punish breakout seekers.......however, eventually, parasitic people who sell volatility get destroyed in one fell swoop, and I cannot wait to hear the screams when it comes.`

WHAAAT?????

Playing breakouts/breakdowns above and below support and resistance levels are standard setups in the intraday daytraders arsenal.

Error 404 · Dec 17, 2003

Quote from kowboy:

WHAAAT?????

Playing breakouts/breakdowns above and below support and resistance levels are standard setups in the intraday daytraders arsenal.

I would think so. I have not been doing it with equities since my trading style is less "planned" and more reactive to what I see on a shorter timeframe....pretty much I see a trade, execute it, and deal with it as it develops.

I can see using the more technical approach I talked about in regards to my search for a platform that would accommodate the "stop to open" and OCO orders as being quite suitable to trading Forex with a somewhat longer term approach (still intraday, but done in a matter of hours rather than minutes as most of my equity trades are). I have been "paper trading" this methodology for a few weeks with great success. The scary part is that using the charts as I have gives me more downside exposure than I am comfortable with in many cases. However I have noticed that the specific trades that have more potential downside than upside also have a far greater winning percentage. I am not sure exactly why, but it certainly seems to be the case (I could make some guesses as to why...some obvious and some less so, but hey, whatever works, right?).

Thanks for the re-enforcement. I truly believe this can work if I put all emotion aside, plan the trades exactly, and take the executions as they occur. I realize that a very high percentage of the trade will likely not get triggered. That is fine. You can't lose money on trades you do not make.

Peace,

RS

version77 · Dec 17, 2003

Quote from Nereus:

NinjaTrader does exactly what you want... Plus, they have just released a new version (Beta version) which also alows multiple targets and stops. I really like its interface and the developer is always quick to respond to questions. Usually a 1 to 3 minute turnaround for email questions to Ray. Check it out!

http://www.ninjatrader.com

The new beta version has lots of new features... email Ray to be able to check out the beta.

Good luck to you.

I believe you have to be a subscriber in order to check out the
new beta version. But you can get a free 2 week trial for the
current version v.2.05 which has 2 targets and 2 stops along
with a Dom... The simulator is free as long as you want I believe...

You have to have an account with IB to use NinjaTrader...