Immediately enters short when I select limit order or MIT

[markpk1]

Why is it immediately entering short like a market order when I select limit order or MIT in Order Ticket and then press sell? Why do I have to use a stop order to wait to enter like a limit order should?

[NinjaTrader_Erick]

Hello markpk1

Thank you for reaching out.

This could happen for a few reasons, such as:

1. Order Placement Within the Spread: If the order price for a limit or MIT order is placed at or beyond the current bid/ask price, it will execute immediately as it meets the criteria of a marketable order.
2. Rendering Delay: If there is a rendering delay on your charts, the displayed prices might not match the actual market prices. This could cause the perception that orders are executing immediately, even if they're placed further from the expected price.
3. Banding Limits: Exchanges have specific banding limits that could affect order execution behavior, particularly during volatile market conditions. Orders placed outside these limits might not execute as expected or could be rejected.

To troubleshoot and resolve: Steps to Confirm Order Behavior:

1. Verify Chart Prices: Check whether the bid/ask prices in the Chart Trader match the actual market prices in another window like the SuperDOM. This will help identify if there is any rendering delay.
2. Order Type Settings: Confirm the type of order being placed and the price level relative to the bid/ask prices. Ensure the limit or MIT order is placed correctly.
3. NinjaScript Utilization Monitor: If rendering delay is suspected, use the NinjaScript Utilization Monitor to identify scripts or indicators consuming excessive resources:
   • Control Center > New > NinjaScript Output
   • Right-click and select 'NinjaScript Utilization Monitor'

Next Steps if Rendering Delay or Banding Limits are Suspected:

• Test with a simpler workspace in Safe Mode:
  • Close NinjaTrader.
  • Hold down the CTRL key while launching NinjaTrader to start in Safe Mode.
  • Open a single chart with one indicator and retest.
• Check Exchange Banding Limits:
  • Ensure the order is placed within reasonable proximity to the market price to avoid rejection or unexpected behavior.

If the Issue Persists:

• Provide a screenshot of the order entry settings and chart prices for review.
• Send your log and trace files for detailed analysis:
  1. You can do this by going to the Control Center-> Help-> Email Support
     
     Make sure to categorize your request at the top.
     
     Ensure 'Log and Trace Files' is checked will include these files. This is checked by default.
     
     If you could also provide a screenshot of what you are seeing, that would be appreciated.

I look forward to your response and helping you resolve this issue.

[markpk1]

So if price is at 5077 and I want to enter at 5067 when price gets to that level, that's not a valid limit or mit order?

[NinjaTrader_Erick]

Hello markpk1

Thank you for your message.

If the current price is at 5077 and you want to enter the market at 5067 when the price gets to that level, this would typically be configured as a Buy Stop order, not a limit or Market if Touched (MIT) order. Let me explain: Order Types and Behavior:

1. Limit Order:
   • A buy limit order is placed below the current market price.
   • If you set a limit order at 5067, it will execute only if the market reaches or dips to 5067 or below. This does not match your scenario as you want to enter when the price rises to 5067.
2. Market if Touched (MIT):
   • A buy MIT order triggers a market order if the price falls and touches your specified price. This would also not meet your needs because it is intended for downward movement.
3. Stop Market or Stop Limit Order:
   • A buy stop market or buy stop limit order is what you are describing.
   • Buy Stop Market: When the price rises to 5067, the order converts to a market order and fills at the best available price.
   • Buy Stop Limit: When the price rises to 5067, the order converts to a limit order at the specified limit price.

Key Considerations:

• Market Stop vs. Limit Stop:
  • A Stop Market order guarantees entry but may result in slippage (you might get filled higher than 5067 if the market is moving fast).
  • A Stop Limit order prevents slippage but risks not being filled if the market moves too fast.

Let me know if you need help placing this order in NinjaTrader or have further questions. I look forward to assisting you!

[markpk1]

I wanted to enter short when price hits 5067 and it is currently trading at 5077, I selected limit, 5067, hit sell. It immediately sold at 5077, which I then had to exit for a loss. I did same thing with MIT order and it performed the same. The way I understand limit and MIT is for it to wait until price drops to that level to enter short. A stop is the only thing that seemed to have it wait and not enter like a market order. The mit and stop market worked yesterday just fine as an exit strategy when I exited my short trade.

[NinjaTrader_Erick]

Hello markpk1 ,

Thank you for your message.

Thank you for explaining your scenario! Here's a detailed clarification of the behavior you experienced and why it occurred: Order Types Explained in Your Scenario:

1. Limit Order:
   • A Sell Limit order is placed above the current market price.
   • If you entered a Sell Limit order at 5067 while the price was 5077, it was interpreted as immediately executable because the price was already below your limit price. A limit order does not "wait" if the market price is already at or better than the specified price.
   • Correct Behavior: For a sell limit to "wait," the current price must be below your limit price when placing the order (e.g., price at 5065 and you enter a Sell Limit at 5067).
2. Market if Touched (MIT):
   • A Sell MIT order is triggered when the market touches or exceeds your specified price, converting it into a market order.
   • If the current price is already better than the specified MIT price (e.g., price is 5077 and you place an MIT at 5067), the MIT behaves like a market order and executes immediately.
3. Stop Market Order:
   • A Sell Stop Market waits for the price to reach your stop level (5067 in this case). Once triggered, it sends a market order to sell.
   • This is the correct order type for your scenario if you want to sell only when the price drops to 5067.
4. Stop Limit Order:
   • A Sell Stop Limit waits for the price to reach your stop level (5067). Once triggered, it sends a limit order to sell at a specified price.

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Why Your Orders Executed Immediately:

• Sell Limit: The market price of 5077 was already "better" than your specified limit price of 5067, so it executed immediately.
• Sell MIT: The price of 5077 also met the condition of "touching or exceeding" 5067, so the MIT converted to a market order instantly.

Why It Worked for Exits:


When you used MIT or Stop Market orders to exit a trade:

• If you were in a short position, a Buy MIT or Buy Stop Market would wait for the price to rise to your specified level before executing, as they were correctly configured relative to your position and the current market price.

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Correct Order Type for Your Situation:


To enter short when the price drops to 5067:

1. Use a Sell Stop Market order. This will wait for the price to drop to 5067 before executing.
2. Alternatively, use a Sell Stop Limit if you want to control slippage.

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Key Takeaways:

• Limit orders execute immediately if the market price is already at or better than the limit price.
• MIT orders convert to market orders as soon as the price meets or exceeds the specified price.
• Stop orders are designed to "wait" until the market price reaches the stop price.

Let me know if you'd like further assistance with setting these orders in NinjaTrader!