Example:
Let’s suppose that I open a long position on ES (Future SP500); in this trader, I will share the orders in 3 entrances, and every of them will have their own profit. Additionally, each new order taken, will cancel the previous one and only will consider the profit of this last one to all the hand in that price. Let’s see the example below:
1 entrance: 2 contracts: Buy on 4129, profit on 4145 and stop on 4115
2 entrance: 1 contracts: Buy on 4122, profit on 4132 and stop on 4115
3 entrance: 1 contracts: Buy on 4120, profit om 4128 and stop on 4115
1º possibility: The market moves and takes the first entrance and goes directly to 4145. In this way, the goal was achieved and the others orders are cancelled.
2º possibility: The market moves and takes the first entrance, and doesn’t go to its take profit, instead of this, goes directly to the second entrance. In this way, the profit on 4145 is cancelled, and now the new final profit for 3 contracts is 4132 (medium price of buy on 4126,66). If the market moves to the profit, cancels the third entrance.
3º possibility: The market takes the entrance 1,2 and 3; in this way, the take profit 4145 and 4132 are canceled, the take profit 4128 is will be consider, with the stop on 4115.
Anyone knows if it is possible set this on ATM strategy?
Thanks!
Oneo
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