Track 'n Trade Autopilot Plug-in
In this Track 'n Trade Autopilot video, we're going to be discussing Entry Strategies.
By selecting Market Order on signal, the Autopilot with execute an order immediately upon receiving a Buy or Sell Signal from your chosen Indicator.
The next drop-down option for entering the market, is the Stop Entry or Limit Entry on Signal. A Stop Entry will drop a Buy/Stop or Sell/Stop Order, into the market at a pretty fine number of points or Pips above or below the Price Bar in which the signal arrow is pointing at.
Similarly, the Limit/Entry Order will drop a Sell Limit or Buy Limit Order into the market at a pretty fine number of points or Pips above or below the Price Bar, in which the signal arrow is pointing at.
For example: If you've selected Stop Entry on Signal, and you have placed a 3 in the points or the Pips field, upon receiving a Buy Signal, Track 'n Trade will automatically place your order 3 Tics, or Pips above the high of the Price Bar in which the Buy Signal is pointing.
In the case of using a Limit Entry Order, and you have placed the 3 in the points or Pip field, upon receiving a Buy Signal, Track 'n Trade will automatically place your order 3 Tics or Pips below the High of the Price Bar, in which the Buy Signal is pointing.
There are distinct advantages and disadvantages to using a Stop/Entry or Limit/Entry Order.
The advantage of a Stop/Entry Order is, that the market may never advance sufficiently enough to continue in the trend. Therefore, your Stop/Entry would never be filled. You would not suffer a loss.
The disadvantage is that you are sacrificing the x number of Pips or Tics above or below the Entry Price Bar for this insurance, or security.
The advantage of using a Limit/Entry Order, is that if a market order pulls back against the prevailing trend, that created that Entry Signal, you could be filled at a better risk entry position.
The disadvantage to this strategy, is that the market may continue in the overall direction of the trend, and may never retrace sufficiently to fill your Entry Order. You could miss the trade, altogether.
*It's important to note
If you're using a very small number, such as 1, there's a chance that the market may move to the specified Entry Price, prior to getting Track 'n Trade time to place your order within the markets.
If this occurs, the market will reject the order, as it's being placed at an invalid price.
When Track 'n Trade receives a rejected order, it does attempt to re-enter the market. Instead, it waits for the next trading opportunity. If you're worried about a market gapping, in the direction of the arrow, you can use the gap entry filter. Which states that if the market gaps by a users specified amount, then continue trading by entering the market with a Market Order. Of course, these last two settings have Q-Calc buttons, to help you determine the most optimal settings.