InsideBars triggering Stop orders

[hpedmd]

Hi,

I have an indicator that identifies a pattern of two consecutive inside bars. I would like to set a strategy that places a stop order (either buy or sell) when the currentbar passes the high (buy) of the or the low (sell) of the second inside bar.




Here is my script logic:

if ( High[0]<=High[1] && High[1]<=High[2] && Low[0]>=Low[1] && Low[1]>=Low[2] ) //checks for inside/inside bar
{

if (High[0]>High[1]) // if high of current bar breaks the high of inside bar then buy
{
EnterLongStopLimit(Convert.ToInt32(DefaultQuantity ), (High[1] + .25), (High[1] + .25), @"IBCloseLongEntry");
SetStopLoss(@"IBCloseLongEntry", CalculationMode.Ticks, 16, false);
SetProfitTarget(@"IBCloseLongEntry", CalculationMode.Ticks, 4);
}

// Set 2
if (Low[0]<Low[1]) // if low of current bar breaks the los of inside bar then sell
{
EnterShortStopLimit(Convert.ToInt32(DefaultQuantit y), (Low[1] - .25), (Low[1] - .25), @"IBCloseShortEntry");
SetStopLoss(@"IBCloseShortEntry", CalculationMode.Ticks, 16, false);
SetProfitTarget(@"IBCloseShortEntry", CalculationMode.Ticks, 4);
}

It does not seem to take the entries as expected. I am using calculate on each tick (as I think I would need that to enter the stop order on the current bar and would not want to wait til bar close).

Any suggestions on making this strategy work?

[NinjaTrader_Kate]

Hello hpedmd,

Thank you for your note.

It looks like you're placing your stop limit orders on the incorrect side of the market. Buy Stop Limit orders would need to be placed below the current market price, and Sell Stop Limit orders above the current price. Also, you should be calling SetStopLoss and SetProfitTarget right before the entry, not after it - putting these after the entry can cause issues.

Limit orders, however, you could place as you're trying to do. If you change these to EnterLongLimit and EnterShortLimit do you see the entries placed as you'd expect?

Thanks in advance; I look forward to assisting you further.

[hpedmd]

Hi Kate W.

Thank you for your response. I think in this case it would be a sell stop order at 1 tick below the low of the inside bar. I only want to sell if the bar (with Grey 1) crosses below the stop.



Here is just an example of a sell stop order (not necessarily meeting my criteria). It would only fill if the price goes below it.

[NinjaTrader_Kate]

Hello hpedmd,

Thank you for your reply.

I must have needed more coffee on Friday afternoon because that's my fault - Sell stops go below the current price, Buy Stops above.

The issue I really note is that you're trying to place your order 1 tick below the low of the inside bar, but only after the price breaches that bar's low - which means it would need to already be to the point you'd be trying to place the order at by the time that order is placed.

In this case, I would recommend just using a market order when Low[0] < Low[1]:

if (Low[0]<Low[1]) // if low of current bar breaks the low of inside bar then sell
{
SetStopLoss(@"IBCloseShortEntry", CalculationMode.Ticks, 16, false);
SetProfitTarget(@"IBCloseShortEntry", CalculationMode.Ticks, 4);
EnterShort(Convert.ToInt32(DefaultQuantity), @"IBCloseShortEntry");
}

Please let us know if we may be of further assistance to you.