Simulated stop loss - why use it?

[Owlman]

Hi,

Why is simulated stop loss available, but not simulated profit target? I can't see the point of using simulated stop loss anyway, as (according to my understanding) it would mean that you must be connected at the time your stop is hit or it won't be executed (if you lost connection for whatever reason). So just idle curiosity really, or maybe I'm missing something?...

Thanks,
Ian

[NinjaTrader_Brett]

Hello,

Thanks for the forum post.

This has to do with more of trading dynamics.

There never is a reason for a profit target to need to be hidden, as you always want the profit target to be first in line to fill first which means submitting the profit target as early as possible to get the best fill.

However will stop losses you want to prevent the chance of getting filled until it truly goes past your stop loss value. As you want to protect against your stop order being triggered since its there and the market markers can see this order and trigger it vs it being hidden on your own side and submitted only at the last minute when it is for sure trading at that volume. This is to prevent against what I would call a smash and grab where the market dips only for a second at your stop order price and then heads back the direction of your trade. When you really did not want to get stopped out until it is for sure headed against you.

Simulated stop orders are more risky since you are correct, they are local only and if you where to be disconnected you would not have an active stop order.

http://www.ninjatrader.com/support/helpGuides/nt7/simulated_stop_orders.htm?zoom_highlightsub=Simulated%2BStop

Let me know if I can be of further assistance.

[Owlman]

Thanks!

Thanks Brett, that makes sense. Gotta say I've seen a number of times my trade just stopped out, and then watched the price march resolutely to my profit target But I still find the simulated stop too scary to actually use. I've seen my connection drop more than once (for a while it was dropping out all the time until I stopped using Google Chrome, believe it or not) so I'm just not game to use it.

Cheers,
Ian