ATM Chase options - when to use

[lorivic]

Hi,
I struggle to fully understand the meaning of this feature.
Can you suggest a couple of real-life use cases, where the "chasing" could be handy?


Thanks,
Loris

[NinjaTrader_PatrickG]

If 'Chase' is enabled, NinjaTrader will automatically adjust the price of your entry limit order with each tick the market moves away from your order up until the Chase Limit amount is reached.

https://ninjatrader.com/support/helpGuides/nt8/en-us/auto_chase.htm

A real-world application of this would be if the market price comes close to but doesn't actually reach your entry price and then begins to move away but you'd like the order to 'chase' the market in the hopes of filling. Lets say your long entry order is resting at 100. The market is currently trading at 110. The market moves down to 102, but then starts moving back up. The price moves back up to 110 and then back down to 108 and fills your order, because your entry order has been 'chasing' the market since it started moving away from your original entry price.