stop limit order (simulated stops?)

[farcry360]

i got the information below from this place

http://www.ninjatrader-support.com/HelpGuideV6/helpguide.html

"Stop Limit Order

To submit a stop limit order, select either the "BUY" column for buy orders or the "SELL" column for sell orders and press down on your middle mouse button (scroll wheel) in the cell that corresponds to the price you wish the stop limit order to be submitted at. A numeric field (image below) will appear that represents the number of ticks away you wish the limit price of the stop limit order to be placed at. Either by using your mouse scroll wheel or clicking on the up/down arrows in the numeric field, set the number of ticks and press the "checkmark" button to complete the order submission. Pressing the "x" button will cancel the order submission operation. For example, if you intend to have an order with a stop price of 1000 and a limit price of 1001 (4 ticks spread for the SP Emini contract) you would set the numeric field value to 4. Following the same example submitting a sell stop limit, setting the numeric field value to 4 would result in a stop price of 1000 and a limit price of 999.

You will notice in the image above that there are also negative values. By selecting a negative value, you automatically submit a simulated stop order. This allows you to place orders that trigger at a break out price but try to fill you at a better price. You can also enable simulated stop order by putting the SuperDOM into simulated order mode. You can enable this via the right mouse click context menu and select the menu "Simulated Order" or via the shortcut key CTRL+A"





so i need some clarification

suppose that emini s&p500 is trading at 999

and i want to BUY a breakout ABOVE 1000

so i want my stop order "mechanism" to trigger when price trades AT 1001

and since this is a stop LIMIT order, i want to buy at the bid price of 1000 and NO GREATER

if i understand this correctly then, should i place the order at 1000, or 1001?

and assuming 1001 is the correct ladder to place the actual order, if i want to buy at a price of 1000, do i set the "number of ticks" to +1 or -1?

but if i put a negative value, it seems like it's considered a "simulated order" or whatever that means...

so im very confused here



so to summarize, market's trading at 999 and i want to buy a breakout ABOVE 1000

so that means the market needs to print AT 1001

where on the price ladder should i clikc the middle mouse button and if i want to buy at an EXACT price of 1000, do i need to put +1 or-1 in the tick value window?



thank you hopefully i was clear enough

[NinjaTrader_Chip]

Hello farcry360,

Thank you for your post.

To place a stop limit order that will be ‘elected’ (i.e. become a live order) when price moves above 1000 then it would be necessary to set to stop price = 1000.

It sounds like you want to use a price limit of 1000; therefore your limit price in this case would have to be set to 1000 as well. This would be considered a ‘0’ limit offset.

If you use a negative offset on your stop limit order it is important to realize that this order type is not a recognized order type at the exchange level. Therefore it is ‘simulated’ on the NinjaTrader platform.

Please let me know if you have any additional questions.

[farcry360]

thank you that cleared up a lot

i thought you had to place the order at 1001 and also thought you couldn't place a zero value in the tick box

so another question is, if i put +1 in the box, that means i will be willing to buy the breakout plus a tick higher, correct?

so probably at the offer price of 1001, if i got this right

thx again

[NinjaTrader_Kyle]

farcry360,

Yes, that's correct.