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5MADT - stop entries and chart based prices

5MADT - stop entries and chart based prices

A number of traders have asked about the "stop entry order" (SeO) used in the current Five Minutes Trading strategy month, as well as chart based stop loss (S/L) and take profit (T/L) orders. Below are screen shots from the CMC trading platform, illustrating how to use these features.

Stop entry orders

SeOs are different to limit orders. Traders use SeOs when they wish to buy above or sell below current market, and were developed around trend following and break out trading strategies. In other words "if the market trades up (down) to here, I want to get on board the trend".

SeOs are selected on the order ticket:

20131001 stop entry tktThe green arrow points to the button to select an SeO (the other two buttons are "market" and limit" orders). When selected, the box above changes to "stop entry".

When the market reaches your trigger price, the trading platform will attempt to fill the order. The yellow arrow points to the choice of trigger price - sell price, mid-price, or buy-price. "Custom stop order triggering" must be enabled in your order settings to have this choice. If it is not enabled, sell entries will default to the sell price, and buy entries to the buy-price.

Boundary prices (red arrow) are an important part of using SeOs. Even where a sell order is set to trigger off the sell price, if the boundary price is exactly the same as the trigger price the order may not be filled, as the next available price could be lower - especially in fast moving markets. Traders face a choice between allowing some slippage on the trigger price, or missing the trade. This is a particular issue if the trigger price for a sell order is set to mid-price or buy-price - having both the trigger and boundary price the same means the order will not be filled.

In setting the boundary price, many traders will consider aspects such as usual spread size in that market, the current speed of the market, the impact on their profitability and the size of any allowed slippage versus the projected profit on the trade.

For more information about setting SeOs, please call our team on 1300 303 888.

Chart based prices - stop loss and take profit orders

In the past, when entering an order from the chart, the S/L and T/P levels appeared automatically as a red and green line on the chart. Feedback from traders saw this setting changed, so they no longer appear automatically. This platform feature is still available, but now must be selected by the trader.

Use the drop down menu, either next to the instrument name or on the order ticket:

20131001 top tkt

When you click on the circled spot, you'll see a drop down menu:

20131001 drop top tkt

Select "Chart (attached)" and the S/L and T/P order prices will appear on the chart as  red and green horizontal lines (respectively).

Many of the defaults for orders can be set by you. In the top right corner of the platform is a silhouette icon. From the drop down menu, select "Order settings", and the following box appears:

20131001 order settings

Use these defaults to take more control over your trading.

If you have any further questions or queries, please call our desk on 1300 303 888

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