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## Transform any order into a limit order selectively based on a trading rule

by Tom Huggens, 4488 days ago

I bet most or all of your trading systems use the same order types to buy and short securities. My strategies also use single order type logic to enter all positions.

Here is a money management script that updates the default order type depending on a trading rule. The script transforms any order into a limit order if the specified rule is true on entry date. The default order, which could be a market order, limit order, stop order or stop limit order, is intercepted in the "OnNewPosition" event of the money management tool and then the rule formula you provide is analyzed and its result is checked. Nothing is performed if the rule is false, however, if it is true then your order is ignored and a new limit order is created.

The order limit price is calculated by multiplying the security price on the signal date by a "Limit %" value you should also provide.

Here is a quick example:

Rule: rsi(14) > 70
Limit %: 1.5

The default order is: Market at open

A buy signal is generated and market at open order is created. Before the order is transmitted, the money management script calls the "OnNewPosition" event.
Our script will calculate the relative strength index (RSI) rule and find that the rule returns "1" (true).
The default order will then be replaced by a limit order whose limit price is: Close price at signal date * -1.5%

Example:
Limit price = 25.2 * (1 - 0.015) = 24.822

If a short signal were generated then the limit price would be equal to:
Limit price = 25.2 * (1 + 0.015) = 25.578

What is this?

 Type: Advanced Money Management Object ID: 1116 Country: All Market: All Style: Technical Analysis

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