ATM question

[SuneSorgenfrei]

Hi
I have tested different ways of setting up ATM strategies for setting stoploss on stocks.
What I ended up with was what i have attached as a image, which is a parameter type of currency and a stoploss of 10 gives an stoploss of $1.
This does not really make any sense to me so I want to validate that this is indeed the way to do that.

[NinjaTrader_Spencer]

Hello SuneSorgenfrei,

Thank you for your post.

It would be expected for a Currency Parameter of 10 to place your Stop Loss 10 cents away from your entry price as Currency is calculated by the dollar per tick value for the order quantity used.

For Stocks, the dollar per tick value is .01 cents (Point Value x Tick Value). So in order to achieve a value of $10 at a quantity of 10, it will need to be placed a complete dollar away from the entry.

If the quantity is set to 100 it would then be placed 10 cents away from your entry price.

Therefore the equation would be (StopLossValue/PricePerTick)/Quantity = Ticks away from entry. Which for your ATM would look like so: (10.00/.01)/10 = 100 ticks or cents for Stock from your entry.

[SuneSorgenfrei]

Hi
Ok so using Currency as parameter takes the quantity into consideration. So to get a repetable result it would be better to use Ticks as parameter, I guess.

[NinjaTrader_Spencer]

Hello SuneSorgenfrei,

Thank you for your post.

This would be personal preference along with what you are looking to accomplish with your trading strategy.

Currency will place your Stop Loss order at a desired dollar amount away from your entry which is dependant on the order quantity where Ticks would be a static tick value independent of order quantity.

The tick parameter is the default setting and in my experience seems to be the most commonly used.