Partial Hotkey based On Unrealized P&L

[KyleK29 256]

On 12/7/2020 at 6:30 PM, rpollack1 said:

Hi Kyle,

1. Entry Positions: I too am in SIM, and my 3 month subscription is expiring next week. I have been using your Fixed $ Risk Hotkeys for Long and Short. I changed it from $20 to $50. One issue that I have is that if I double click the chart too far away from the current price, it buys a small # of shares (I get the math behind why), and if I buy right near the price, it buys almost too many shares and then I often get stopped out before I have a chance to manually drag the Stop Loss down. For new traders, what do you suggest? 

2. Partialing Out: I also have a sell/cover 25%, 50% and 100% button and also a "break-even" button that cancels any open stop loss and moves it back to the break-even (based on the original entry). What is the best way to partial out? Is there a hotkey similar to what you describe in this thread that can help me better scale out based on Risk/Reward amounts or percentages based on my risk? So a $50 Risk is 1 R, right? So if I want to scale out at 2R or 3R, what do you suggest I do to achieve this? 

Thanks! 

-Reagan 

 

1) Overtime you'll learn how to read the price action and how your position size equalized to the $risk will be different based on the stock price and your stop distance. It gets easier.  I use $50 risk hotkeys as well .. the key to understand is that the position size doesn't really matter (assuming there isn't an issue with the hotkey or your buying power), if you think in factors of R. When I enter a position, I think of a) how far do I think this will run and b) what is the current price / ATR / spread -- this allows me to think in factors of R (e.g. I think it'll run 2.5R).  You can still return $100 (2R) on a position with 4 shares just as you can with a position that has 400 shares. Just keep in mind:

- The closer you click the price-action (last price) for your stop, the more Slippage Risk you take on. A stop distance of 0.02 cents has a lot of risk, because it's not hard for many stocks to slip that 0.02 more cents on your fill (thus a $50 risk becomes $100). In contrast, a 0.10 cent stock distance with a 0.02 slippage is only slipped from $50 -> $60. You don't want to drag a stop further away from your entry point because you're increasing risk at that point.

To help with the figuring out your current position risk (based on StopPrice), put a hot-button on your montage with this script: 

Price=AvgCost;Share=Price*100;Price=StopPrice;SShare=Price*100;Share=Share-SShare;Share=Share;Price=Share/100;Share=Pos;Price=Price*Share;TogSShare;Share=0;

^^ This will populate your montage's Price box with the current $Dollar risk factored from your StopPrice and AvgCost. So when you first enter a position with a $50 risk hotkey, this should show ~$50.00. This hotkey script is a calculator only and should be used for information only (checking your current $risk), don't use it to do anything with the orders.

- Think of the optimal Stop Distance as a function of the symbols Average True Range, current price, and spread. A $10 stock with an ATR of 0.50 cents and a spread of 0.01 can have a 0.05 cent stop-distance and be relatively safe, because it moves in small increments. In contrast, a stock at a $600 price with an ATR of $30.00, and a spread of 0.60 cents can sometimes have a stop-distance of 3.00 or more.  

 

2. I'll have more advanced hotkeys to help automate this stuff in (hopefully, knock on wood) the near future. But the way I do it is I:

- 1) Drag the stop order on chart to adjust the level price (e.g. if I'm trailing a Moving Average).

- 2) Double-click the "qty" on the chart stop order's flag, this will load the order into the montage. I then use a hot-button on my montage with the following script to replace that order with the new position size.

DAS SIM users:
TogSShare; Share=Pos; REPLACE; Share=Pos; ROUTE=LIMIT;  TogSShare; 


IBCO SIM Users:
TogSShare; Share=Pos; REPLACE; Share=Pos; ROUTE=SMRTL;  TogSShare; 

 

Edited December 9, 2020 by KyleK29

[rpollack1 0]

Kyle! thank you for your incredible email and assistance. You are such a great mentor. I appreciate it. 
 

Do you also recommend using a range stop order so that it will set a 2 or 3R goal and a stop loss of 1R? Is there a hot key for this? Also can I partial out as normal with this?

I have been Trading at the open in the morning when Andrew does that and the price action is so fast that I usually get stopped out because I am putting the stop too close to the price and it jumps too much - so I’m wondering what I should do for opening range break out or break down situation?

[Alastair 110]

19 hours ago, KyleK29 said:

Double-click the "qty" on the chart stop order's flag, this will load the order into the montage. I then use a hot-button on my montage with the following script to replace that order with the new position size.

thats a neat trick......How many more little tricks like this u have ?

[TraderWayne 11]

On 12/7/2020 at 5:16 PM, KyleK29 said:

This is not too far off how I trade it. My entry triggers all of my take-profits at various R levels which I've premapped out (e.g. 10% @ 1.5R, 20% at 2R, etc.) according to my strategy. 

Are you able to share these automated R-level, take-profit scripts?