Add on to a position with an ATM question:

[Stok]

Hi,

Say I have an ATM that puts in a target and a stop once a position is initiated. Then, if the trade moves favorable and I want add another position (same quantity as the ATM), is there a way to adjust the current stop and target to the new updated position? Right now when I add on a position, it submits new stops and targets....which creates two tickets in the broker platform. Thanks!

Quick example, buy 100 shares at $24 with a $1 stop/target ATM. Then buy another 100 shares at $24.50, but then a new stop/target is generated based on the new price. I just want to update the original stop/target from 100 to 200 shares.

[NinjaTrader_Kate]

Hello Stok,

Thank you for writing in.

When it comes to the automatic submission of Stop Loss and Profit Targets with ATMs and how subsequent order fills are handled, there are two approaches:

1. Scaling into a position or out of a position should automatically update the order sizes of existing stop and target brackets
2. Scaling into a position should create a new set of stop and target brackets based on the new order fill price

If you always want to operate with approach number 1, then you will always want to have the ATM Strategy control list set to your active ATM Strategy when one exists. This is accomplished by setting the ATM Strategy Selection Mode to "Select active ATM strategy on order submission". The ATM Strategy Selection mode can be set by right clicking on the order window and selecting "Properties" > ATM Strategy Selection Mode.

If you change your mind and want to have new stop and target brackets submitted on a new fill, then set the ATM Strategy Selection Mode to "Keep selected ATM strategy template on order submission" and the strategy control list will not automatically set to an active strategy when one is created.

Please let us know if we may be of further assistance to you.