Tp, Sl , Order book & Slippage : Beginner's question

[RookyNT8]

Hello
I'm new here and this is my first post and I don't know if I'm in the right category.
I would like you to confirm ( or deny) that when a strategy places an order with TP and SL, we enter at the market price, so we suffer slippage but the TP and SL are placed automatically in the order book so no slippage.
Thanks for the information

[NinjaTrader_Emily]

Hello RookyNT8,

Thank you for your post and welcome to the NinjaTrader forum community!

Whether slippage is possible for an order does not have to do with whether it is an entry order or a Stop Loss/Profit Target order. It has to do with the order type. If an entry is a market order (as you mentioned entering at market price) then slippage could apply. Whether slippage could apply to a stop loss or profit target depends on the order type. For example, a limit order would not experience slippage, though it is also not guaranteed to fill. A stop market order, even if it is an order "placed in the order book" would still be subject to slippage as once the stop price is hit, it converts to a market order which could experience slippage. For a strategy, it would be important to understand what order types are being used for your entries and exits to get a deeper understanding of which orders could be subject to slippage or not.
For more information regarding different order types and slippage, please see the following publicly available resources:

https://www.investopedia.com/terms/s/slippage.asp

https://ninjatrader.com/futures/blogs/three-basic-order-types-explained/

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

[NinjaTrader_BrandonH]

Hello RookyNT8,

Thanks for your post and welcome to the Forums!

To avoid slippage on a stop order, you would want to use a stop limit order (such as ExitLongStoipLimit()) with no offset, meaning the stop price and the limit price are the same.

To avoid slippage on a target order, you could use a limit order such as ExitLongLimit().

Please note that the NinjaTrader platform does not have any control over the execution of live orders. Once orders have an Accepted or Working status, they reside at the exchange and will execute as per market dynamics

Managed Approach: https://ninjatrader.com/support/help...d_approach.htm

[RookyNT8]

Thank you for your answers. I will follow these links.
Considering what you have written, if I understand correctly, the orders are on the "exchange server". I can therefore cut NT8 once the order has been placed and when the price reaches the Sl or TP, the position will be closed automatically and I will possibly suffer a slip depending on the type of order I have placed.
Can you confirm that I have understood correctly please.

[NinjaTrader_Emily]

Thank you for your answers. I will follow these links.
Considering what you have written, if I understand correctly, the orders are on the "exchange server". I can therefore cut NT8 once the order has been placed and when the price reaches the Sl or TP, the position will be closed automatically and I will possibly suffer a slip depending on the type of order I have placed.
Can you confirm that I have understood correctly please.

More info on where your orders reside based on the order state as well as order state definitions may be found at the following links:

https://ninjatrader.com/support/helpGuides/nt8/where_do_your_orders_reside_.htm

https://ninjatrader.com/support/helpGuides/nt8/order_state_definitions.htm

With that said, if you close NinjaTrader your automated strategy will no longer be active to monitor your position and submit additional executions. Some strategy's have logic in place to submit and entry with an attached stop loss and profit target. They might also have logic in place that if something else happens, the stop loss and profit target are canceled and the position is exited, or they may have modifications to the stop loss and profit target in place for behaviors such as a breakeven or trailing stop. If NinjaTrader is not open and connected with the strategy enabled, these actions are not able to take place to manage the position automatically.

Whether you will "probably" suffer a slip ultimately depends on the order type and market dynamics and is not determined by NinjaTrader when trading on a live account. It may be more likely in times of higher volatility/fast market movement.

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

[RookyNT8]

thank you, I understand everything