I have written and attached here, for demonstration purposes, that issue. Attached is a strategy the will simply place an order on the chart for a long stop market order 15 ticks above the close if the bar closes up and 15 ticks below the close if the bar closes down.
Please run this strategy on a 1 minute chart of a decent volume instrument and observe that the strategy behaves as expected when the user doesn’t touch the orders. For an up bar, a buy-stop order is placed above the close and will stay in force until the bar closes. Then when the next bar closes the strategy will place another trade at the above or below the bar, depending on if the bar closed up or down. It will repeat this, which is expected.
When you are satisfied the strategy is doing what is expected, let’s say you aren’t dealing with such a simplistic strategy but one that is much more complicated with many more criteria for placing an order. Usually you let the order stand – because you’re supposed to trust your strategy - but there may come a time when you don’t like the looks of the setup and you wish to cancel the order. We’re taught that isn’t advised – that you should trust your strategy but let’s also allow user prerogative to cancel the order because after all, the user should be allowed to cancel the order if experience dictates.
With that in mind, after you are satisfied this strategy runs as intended putting a stop market order every other bar or so, as soon is it places the order, cancel the order by clicking the 'x' on the chart, pretending that you are exercising a user inclined prerogative. As a user you are allowed to cancel your orders, after all. When a sell stop is placed cancel it and when the strategy places a buy stop, cancel that one as well.
Now observe that the strategy will never again place another order for any other signal it receives, which in this case is simply whether the bar closes up or down. I have drawn dots where it should have placed a stop market order to illustrate that the strategy is now refusing to place those orders.
Is this expected behavior? If so, how is it that, while the user is allowed to cancel the order if he/she is so inclined, the user isn’t allowed to expect the strategy to place another order at the very next signal or any other signal it ever gets again?
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