Auto Chase - the prurpose

[WizardTrader]

Hi!

I've learned, finally, how to use Auto Chase feature. I don't suppose any other platform has this king of thing, I didn't find any, at least; so it must be totally NT's development.
What's not clear to me is the purpose - what actually auto-chasing is for? From my understanding, it's when I'm ready to enter the position at a certain price, but I'm willing to take a liberty of entering at somewhat worse price than I initially intended. Am I right?
And with the target chase is similar - I'm ready to leave the position with somewhat less profit target than initially was set.

Would you, please, tell me, if I'm wrong or not?

Thanks!

[NinjaTrader_RyanO]

Hi WizardTrader,

Thank you for your post.

The purpose of these features is to ensure that you get in the market, and you are willing to sacrifice a little on the entry price to guarantee that your entry order is filled.

The Target Chase is used when you wish to sacrifice a little on the exit price to guarantee your stop is not ultimately filled.

The main purpose of these types of chase features is to ensure that quick price movements in either direction are covered for purposes of entry and exit orders.

[WizardTrader]

Thank you for prompt response, Ryan!

AutoChasing resembles me pegged orders, except that pegged orders are not universally supported. Can AutoChasing be considered as specific case of pegged orders, like pegged limit order with some offset amount? How they are different, essentially?
Sorry, if I'm asking silly questions, I'm a beginner.

Thanks!

[NinjaTrader_RyanO]

WizardTrader,

Yes, When using AutoChase or Target Chase you using limit orders set a specific price on the market. Those orders are active, waiting to be filled. If the market moves and touches those limit orders then those features will chase if the order is touched, but perhaps not filled.

They basically cover the opposite side that an order with a limit does not, which ensures that the order will get filled if the stop price of your order is hit no matter which way the market trades after touching your order.

[WizardTrader]

I see... So, I was right, it can be considered as pegged order, right?
Thank you very much, Ryan!