people with nt,
i have several trend following strategies that are very simple.
in the case of a downtrend, the strategy will sell 1 contract short (of having it) and attach stop loss and breakeven stop orders to the position. this works well, the position will be held until it is stopped or until the downtrend condition is made to end.
my strategies typically open positions at extremes and there is almost always a temporary pullback against the direction i have opened my position in. because of this i am interested in adding code to my strategies so that every position will sell one contract short at market and a second entry will be placed some points above the current price. i would use the inverse of this methodology for long positions.
so, i want to understand whether the following position management would be possible in nt, specially if a strategy like i describe below could be backtested - optimized.
if a downtrend starts:
enter short = open short position sell 1 contract short at close market ; ordinary position
and place stop order sell short position for 1 contract at close + 16 points; pullback position
and the position management i have in mind would be as follows:
ordinary position would have stop loss and breakeven stop orders attached to it. if price is mostly made to move in my favor, then i would have only 1 contract at risk. when this position is closed all stops should be cancelled and the second entry order that was never opened should also be cancelled.
if price is made to move against my initial ordinary position, and the pullback position is indeed executed - filled, then i would want stop loss and breakeven stop orders to be attached to and calculated for the entire 2 contract position. this larger position will then either be held until the downtrend condition is made to end or will be stopped out.
this would be one single condition and one single entry with two separate orders, so i don't think it should be understood as pyramiding. i think i would only need a very simple working sample.
very well, thanks, regards.
Comment