Placing short orders through NinjaTrader.Client assembly, raises error for stop loss

[NinjaTrader_ChelseaB]

Hello abner77,

This example appears to have an invalid price for a buy stop order.

A buy stop order must be above the current ask.

A sell stop order must be below the current bid.

You will need to choose a valid price for your order.

[abner77]

Hello abner77,

This example appears to have an invalid price for a buy stop order.

A buy stop order must be above the current ask.

A sell stop order must be below the current bid.

You will need to choose a valid price for your order.

That's the error that makes no sense. An StopLoss for a buy order is always below the price!!.

The API is all wrong on that. It's a huge bug.

https://www.investopedia.com/articles/stocks/09/use-stop-loss.asp

What Is a Stop-Loss Order?

A stop-loss order is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. For example, let's say you just purchased Microsoft (Nasdaq: MSFT) at $20 per share. Right after buying the stock you enter a stop-loss order for $18. If the stock falls below $18, your shares will then be sold at the prevailing market price.









Stop-limit orders are similar to stop-loss orders, but as their name states, there is a limit on the price at which they will execute. There are then two prices specified in a stop-limit order: the stop price, which will convert the order to a sell order, and the limit price. Instead of the order becoming a market order to sell, the sell order becomes a limit order that will only execute at the limit price or better

[NinjaTrader_ChelseaB]

Hello abner77,

Open the SuperDOM.

Place a buy stop market or a buy stop limit order below the ask.

What happens?

Call your broker. Ask if you can place a buy stop order below the market price.
What does your broker say?

Video to demonstrate.
https://drive.google.com/file/d/17MS...w?usp=drivesdk

See the definition of a stop order.
Quote from the definition:
"Buy-Stop
A buy stop order is entered at a stop price above the current market price. A sell stop order is entered at a stop price below the current market price. "

https://www.investopedia.com/terms/s/stoporder.asp

[abner77]

Hello abner77,

Open the SuperDOM.

Place a buy stop market or a buy stop limit order below the ask.

What happens?

Call your broker. Ask if you can place a buy stop order below the market price.
What does your broker say?

Video to demonstrate.
https://drive.google.com/file/d/17MS...w?usp=drivesdk

See the definition of a stop order.
Quote from the definition:
"Buy-Stop
A buy stop order is entered at a stop price above the current market price. A sell stop order is entered at a stop price below the current market price. "
https://www.investopedia.com/terms/s/stoporder.asp

The UI allows exactly what I'm saying.

[NinjaTrader_ChelseaB]

Hello abner77

Unfortunately, the screenshots do not help.

Have you tried what I have suggested?

Did you read the Investopedia page under Buy-Stop?

Did you contact your broker?
If so, we need this in writing.
Write an email to your broker and ask if you can place a buy stop order below the ask price.
I would like to read their response.

[abner77]

Hello abner77

Unfortunately, the screenshots do not help.

Have you tried what I have suggested?

Did you read the Investopedia page under Buy-Stop?

Did you contact your broker?
If so, we need this in writing.
Write an email to your broker and ask if you can place a buy stop order below the ask price.
I would like to read their response.

i dont have a broker, im using the sim account to evaluate the api, and if it's suitable for my needs i will open an account with ninjatrader

[abner77]

Hello abner77

Unfortunately, the screenshots do not help.

Have you tried what I have suggested?

Did you read the Investopedia page under Buy-Stop?

Did you contact your broker?
If so, we need this in writing.
Write an email to your broker and ask if you can place a buy stop order below the ask price.
I would like to read their response.

How are you going to limit losses putting your stop loss above the current price? That does not make sense. In the way you are referring to this, that is the definition of a limit order to automatically exit the position once reached the price you think the market is going to go. It's not that complicated, you buy at market price, and in the same order you specify a limit below the acquisition price at which you want the position to close to limit the losses, that's an stop loss or stop market order.

[NinjaTrader_ChelseaB]

Hello abner77,

A buy stop order used as an exit would be exiting a short position. In a short position if the price goes up you are taking losses. If the price goes down you are gaining profit. A limit order would be used below the ask as a profit target. A stop loss would be above the market to prevent losses.

Your broker may be able to help you further understand how stop market and stop limit orders work.

I agree with investopedia,
"A buy stop order is entered at a stop price above the current market price. A sell stop order is entered at a stop price below the current market price."

[abner77]

May I speak with someone else please?

[NinjaTrader_Jim]

Hello abner77,

A Stop Loss is an order that we use to protect our position in case the market goes in the opposite direction.

This can be a Stop Market order or a Stop Limit order. The order will be placed at the price we specify. It is not "always below the current market price." It is where you specify. The order will be accepted with the following criteria (Ref Investopedia)

"A buy stop order is entered at a stop price above the current market price. A sell stop order is entered at a stop price below the current market price."

This would be the case for protecting a short position where the Buy Stop Market order would be above the current market price. You are submitting a Buy Stop Market order below the current market price and this is invalid. You may inquire with a broker if you do not agree with the definition given by Investopedia.

Please let us know if you have any questions.

[abner77]

Hello abner77,

A Stop Loss is an order that we use to protect our position in case the market goes in the opposite direction.

This can be a Stop Market order or a Stop Limit order. The order will be placed at the price we specify. It is not "always below the current market price." It is where you specify. The order will be accepted with the following criteria (Ref Investopedia)



This would be the case for protecting a short position where the Buy Stop Market order would be above the current market price. You are submitting a Buy Stop Market order below the current market price and this is invalid. You may inquire with a broker if you do not agree with the definition given by Investopedia.

Please let us know if you have any questions.

https://www.investopedia.com/article...-stop-loss.asp

What Is a Stop-Loss Order?

A stop-loss order is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. For example, let's say you just purchased Microsoft (Nasdaq: MSFT) at $20 per share. Right after buying the stock you enter a stop-loss order for $18. If the stock falls below $18, your shares will then be sold at the prevailing market price.



As I have said, the UI of ninjatrader, allows to place a position stop market, with a stoploss price below current price. The problem is neither in the defintiion neither in the ninjatrader UI itself, the problem is within the NinjaTrader.Client dll, that somehow, does not send the same command that the UI would do.

Follow the steps I did in the UI, as seen in the 3 images I attached in #19 post. Place a Buy order, set the order as a StopMarket, set an stop loss price below the current price, and the system will put the order. I dont know how to explain this more clearly. .