Multiple Brackets

Posted by Deb | Day Trading Journey | Sunday 27 June 2010 11:25 am

When I entered my trading platform, Transact, on Friday, I did it through the Sierra Charts platform (which is my indicators platform) and not directly from its desktop icon.  Why did I do that?  I don’t know.  Usually I start with my Transact, then open the Sierra Charts from the Transact’s interface.  But occasionally I do it the other way around.

What I didn’t realize is that appearantly I hadn’t did that since the emini switched to the ESU0 symbol.  They change the symbol for the contracts every 3 months, as the future contracts are valid for 3 months.  Due to that, I had not yet saved my regular configuration of having the multiple exits choice chosen.

When trading on the Transact you can either choose no brackets, meaning every order  you give is taken as it is, or in single brackets mode, in which you give your profit exit and stop loss points.  In this option when your order is met and you enter a position, the platform automatically generated for you exit orders in the profit and stop-loss points you gave.  When one of these orders is met the other is cancelled automatically.

The last choice Transact gives is the multiple exits choice.  In this choice, when you enter a position with more than one contract, a few profit exit points are generated, as well as the stop loss point.  You have to predefine the number of pips you want for each exit point, and similar to the single exit case once a profit point is met, a contract is reduced from the stop loss point until all contracts are closed.

What happened on Friday is that I didn’t realize the multiple exits choice was not ticked.  Once my order was met and I was in a position, I immediately realized no profit and stop loss orders were generated.  It had been a long time since this happened to me so I forgot that in such a case I have to wait until out of this position before I tick this choice.  I ticked it immediately, so that all  further orders would generate automatically the profit-stoploss brackets.

It took me some time to exit the position, but when I finally did, with a nice profit, the system understood my profit order, which was not generated automatically, as a new order, and brackets were generated around it.  One of these points immediately caught and I lost part of my profit.  It took me a minute to understand what happened.  I immediately got out of the position, but out of pressure pressed the mouse one time too many and was in a new position again, at least now it was in direction I wanted – short – and not long.

It took me some more time to get out of this position too and regain my profit, even add a little to the original sum.  I hope I had learnt now my lesson:

1.  Before starting to trade check that you have some kind of brackets chosen in your trading platfrom.

2. If for some reason this didn’t happen, wait till out of your position before choosing the desired brackets option in your trading platform!


1 Comment »

  1. Comment by WP Themes — July 1, 2010 @ 5:34 pm

    Good fill someone in on and this fill someone in on helped me alot in my college assignement. Thanks you as your information.

RSS feed for comments on this post. TrackBack URI

Leave a comment

CommentLuv badge

This site uses KeywordLuv. Enter YourName@YourKeywords in the Name field to take advantage.