Reasoning for Buy Stop/Limit order Error message.

[ntbone]

Why is there an error message for a buy stop or buy stop limit order when placed below the current market price?

If a BUY stop/limit (or stop market) order is placed at a price below the current price, an error message pops up and the order is rejected (when paper trading at least). If a stop limit BUY order is placed below the current price, the expectation is it would trigger right away and become a limit order. Similarly , a BUY stop market order would trigger right away if placed below the current price.

As an example if the current price is 55 and an stop limit order is placed at 54, an error message comes up "Buy stop or buy stop limit orders can't be placed below the market". Is this a safety precaution for unintended order entries?

[ntbone]

I have been using TC2000 for paper trading and with their paper accounts buy stop Limit and stop Market orders execute right away if the stop is placed below the current price. The only reasons I can come up with as to why NinjaTrader would pop up an error messages is because some brokers/exchanges don't support that. It does complicate things for me at times though when trying to get orders in place forcing me to make a decision on the order type when the price and the order are really close to each other and I really want to be filled at a specific price.

[NinjaTrader_ChrisSch]

Hello ntbone,

Thank you for your note.

This error indicates that between when your order is in the Initialized or Pending Submit states, and before it can reach the Accepted state, the market has moved in such a way that your order is no longer a valid type. This is the way stop limit orders are designed to work in the platform.

Please let us know if further questions come up.

[ntbone]

I understand that it maybe the way its designed to work in the software, but I still do not understand the reason for this limitation. It would be preferable to have it just trigger right away if the market has moved.

[NinjaTrader_ChristopherJ]

If the current market price is 55 and you want to submit a Buy below the market at 54 this would need to be submitted as either a Buy Limit or Buy MIT. The only time a Stop order would be used is if you were submitting a Buy order above the current price such as at 56, 57, etc.

[ntbone]

I have had it numerous times where I set up the order, but by the time I click the button it has moved in such a way that it makes my order invalid. This is very undesirable since it then takes time for me to adjust the order, and timing can be very important. A stop order when the price has passed could just execute right away eliminating this error message and the slow down in the order entry. While my example shows a $1 move, the times where its affected me the most is when I am entering an order with a few cents of the entry and it moves just enough to invalidate my order.

I still do not see any good reason as an end user, for this to give me an error message vs just executing my order, executing the stop order right away in the event the price moves to cause this current error message.

[NinjaTrader_ChristopherJ]

I have submitted your suggestion to our development team and will follow up as soon as a tracking number has been assigned.

[ntbone]

I just had a scenario today with a strategy I built had this error message come up, causing the strategy to fail to have its stop order filled. The instrument continued to move against the position resulting in significant loss of money once I was able to manually close the position. Thankfully this was a simulation account.

I would still like to know what the reasoning behind this error message is, and why stop orders market orders don't just become stop orders if the price for them is already below for sell, and above for stop.

I tested out limit orders, and if the price has already moved passed the limit order when it is submitted, it just executes right away. Other trading software I have used executes stop market orders/stop limit orders right away if the price has moved past the point that would trigger them.

This is requiring me to create far more complicated code for submitting stop orders and stop limit orders due to having to check the price, and then submit a different order type if the price has already moved.

[anexx]

So, I've been using the Sim account to test out my ATMs with a Stop Limit and everything has been working just fine. This morning when I tried to execute an order I received the following error: "Provider does not support stop limit" Um, what? I wondered what changed. I added the "Coinbase" connection to start up under the connections section so I thought that had to be the reason my ATMs stop working and sure enough, they started working again after disconnecting that connection.

I assume that having more than one connection other than just the NinjaTrader Continuum connection causes the Stop Limit orders to fail because the orders are checking all connections?

What's strange with that connection is it doesn't have a login section, so what is it used for then as I assumed it was for the cypto feed?

[NinjaTrader_ChristopherJ]

When using the Simulation account only the primary connection will be registered for the types of orders supported therefore if Coinbase was the primary connection if an order type is not supported by that feed it would be rejected. To resolve this I suggest connecting to NinjaTrader Continuum first and Coinbase second. If you would like to continue using Connect on startup you can change the name of your Coinbase connection so it is below NinjaTrader Continuum in the list so this will connect second upon startup.

[anexx]

Ok, thanks for the info, I went in and renamed my connections to 1- Ninja, 2- Coinbase, etc. and works perfectly.

I have a Coinbase account, how come I can't add my login for them on NT8?

[NinjaTrader_ChristopherJ]

When creating a connection to Coinbase a User name and Password are not required as outlined at the link below.

[anexx]

@ NinjaTrader_ChristopherJ

Again, I have a User Name and Password for https://www.coinbase.com/signin so why does the NT8 connection not ask for my credentials? (This connection makes no sense without it)

[NinjaTrader_ChristopherJ]

The Coinbase connection only provides data in NinjaTrader as opposed to trading therefore login information is not required with this connection technology.

[anexx]

so absolutely worthless to trade, got it thanks.