The following explanations illustrate the trading principles only in Stereo Future Mode, which is just one of four different trading models. (See Key Technology).
The current price is always displayed as either bid, ask or both. The spread is displayed below the price and warns with another color, when the spread goes above a definable threshold. In case of exceedance, no order is accepted or filled. All manual orders and positions are placed via the pole:
Market order – click on the price display, left side for long, right side for short.
Limit order – click and drag below the price line in the buy section for a limit buy order, above the price within the sell area for a limit sell. By default, any limit order is defined as synthetic Limit Pullback Order. Such an order gets filled only when a price pulls back into the direction of the order. This reduces the risk during volatile phases and increases the profit when such an order is used to close a position partially or fully.
Stop order – click and drag above the price in the buy area for a stop buy, below the price in the sell area for a stop sell.
The size for any new order or position is always taken from the Pool Panel (see below).
Deleting an order or closing a position – either done by Ctrl-click on the line of the corresponding order or position, or by normal clicking on the line and pushing the corresponding button of the order panel.
Advanced market orders: Ctrl-click on the price forces a parallel closing of any opposite positions. Shift-click on the price sends a Trailing-Market-Order which trails the price into the opposite direction and gets filled as soon as it pulls back.
Advanced pending order commands: A stack of chained orders in a definable distance and a definable progression can be placed by clicking while holding down the Ctrl-key. Useful to trade a reversing market or to trade out of a correction into the trend.
The Pool Panel in Stereo Future Mode
In any virtual mode, such as Stereo Hedge Mode or Stereo Future Mode, the current positioning is managed via the corresponding Pool Panel. Besides this, it holds the lot size for any new order or position.
- Order size – the lot size for a new order or position. The size can also be set by using the quick buttons below.
- Stop loss and Take profit – the relative distance to the average open price of the position in points/pips after activation.
- Trailing stop – the trailing stop mode to use after activation. StereoTrader provides several by default, such as Straight, TickAverage (TA), Periodic, SMA, EMA, Trendline.
- Trailing distance – the distance of the stop to the level where the stop is trailed.
- Trail begin/BE – defines the start level where trailing begins.
- SL – activates/deactivates the stop loss for the position.
- TP – activates/deactivates the take profit for the position.
- TRL – activates/deactivates the trailing automatic.
- BET – activates/deactivates the save break even save function.
Closing positions and deleting orders
- Reset – closes all positions, removes all pending orders and stops all automatic order algorithms (panic).
- Flat – closes all positions. Ctrl-click closes all particular positions with a positive profit
- BuyO – deletes all pending buy orders
- SellO – deletes all pending sell orders
Besides dealing with numbers, orders and positions are visualized in the chart. All such lines and other elements are also interactive in many ways and can be dragged by the mouse, selected by clicking, deleted/closed by Ctrl-click.
From the bottom to the top:
- Solid red line (SL Buy) – Stop loss of the buy position
- Dashed blue line (BUY 100) – Break even of all buy positions, total size 100 lots
- Blue dots around the dashed blue line – Particular buy positions, clicking loads data into the Edit Order panel and allows also for partial closing.
- Solid gray line – Current bid
- Solid short double red/blue line – Current bid and ask separated
- Dotted blue line with small square – Trail begin and break even save trigger price
- Dash-dotted red line (SELL LMT 50) – Sell limit order, size 50 lots. In this mode to reduce the total buy position of 100 lots by 50 los.
- Solid blue line (TP BUY) – Take profit of the buy position
All colors are exemplary and are customizable.
A long trade with stop-loss, take-profit and an opposite order for partial closing in Stereo Future Mode.
Orders may be defined as MIT orders (synthetic market if touched) or as normal orders, which are stored on the brokers server. MIT orders have more features, such as the Limit Pullback function (see below).
Clicking on an order loads its data into the Edit Order panel. Particular positions within the pool may be loaded too by clicking their dot besides the Pole.
- Order size displays the lot size of the selected order.
- Order price shows the limit or stop price of the selected pending order.
- P/L – the current P/L if the order is filled
- Attributes – defines the processes after a pending order has been filed. Available are
- CA – cancel any other order, also known as OCO (one cancels other) functionality
- CO – cancel opposite orders
- RV – reverse positioning. In case of a sell-order, any buy position would become closed and vice versa
- NT – net order. Means, in case of a sell-order, the size of the sell-order would compensate the buy positions first, before a new short position would be opened. In case of Stereo Future Mode, this option is disabled, because any order is defined like that in this mode.
- Limit pullback – the amount as points which a limit order has to pull back until it gets filled. This prevents from fills at worse levels during volatile phases and can decrease risks drastically!
- Trail order – pending orders have the ability to be trailed too. The modes are the same as for stop loss: Straight, PLH (periodic), SMA/EMA and based on trendlines.
- Trail distance – In case of a trailing order, this parameter specifies the distance to the motion trigger in points.
- Delete order – deletes the selected order
Supported trailing methods are:
- Straight – follow the price at a specific distance (normal)
- TA – tick average (for scalping)
- SMA/EMA – follow a specific moving average (for swings)
- PLH peak – based on price action, best for swings
- PLH n – below the lowest low of the last n periods/candles (in case of a long positioning, short vice versa)
- Trendline – follow the level of a trend line
Besides using the normal trailing stops, its possible to trail any order too and to trail multiple orders in different ways to realize multiple trailed exits. (See below). Furhtermore, if the integrated methods don´t suit your needs perfectly, the programmers API allows to define any custom trailing method.
Trailing stop using periodic lows and highs (PLH method)
In general, trailing stop loss works as follows:
- Define the method and the distance
- Specify the level where the trailing begins, either by entering a number of by dragging the trigger-line on the chart
- Activate/deactivate trailing anytime by clicking on the TRL switch at the Pool Panel
- Additionally the Break Even Save function may be activated/deactivated too, by clicking BE at the Pool Panel. As soon as the trail-begin level is reached, the stop loss is moved to break even plus a customizable distance.
The most effective way of trailing is surely the PLH method. The picture illustrates this: A normal trail (Straight) would have gained a profit of just 11 points, the PLH method gained more than 40 in this example.
Besides trailing stops or normal stop loss, additional exit rules may be used:
- Trade P/L – exits the entire trade after reach of a specific absolute amount, either negative or positive. The amount may be trailed as well. The Trade P/L includes all particular positions which have been removed or added in since the main trade started.
- Equity– allows to define an equity-minimum or maximum
- Time exit – forces closing of the entire trade when a specific daytime has been reached.
- Trade P/L – Profit/loss of the whole trade, including all added and closed particular positions. The calculation starts with the first opened position and ends with last closed one
- Pool P/L – the profit or loss over all active positions in the current pool
- Break even – the accumulated break even price of all positions.
- Volume – the accumulated size of all positions, positive indicates long, negative indicates short.
- Risk/reward – the accumulated RRR of all positions. Also displayable as percentage value.
- Distribution – the visualized distribution of buy and sell positions. The distribution is additionally indicated in the title line of the panel by dots
- Profit | Loss – the summary of the particular positions in either profit or loss.
- Trade – A trade begins when the first position of a series is opened and ends, when the last position is closed – regardless which direction was traded first or last.
- Last trade – Result of the last trade
- Session – A session is a series of trades. This can be an hour, half a day or several days. The duration of a session is variable. The button Reset session resets all statistical data of the current session.
- Intraday – The server time between 00:00h and 23:59h
- Since start – Since StereoTrader was launched on the chart
- Gain – profit of the current session
- Relative DD – the relative maximal drawdown during the current session. Value is real equity based and shows true drawdowns.
- Rate – Relation between winning and losing trades.
- PF – The profit factor.
- Realized P/L – Realized profits and losses
- Realized buy P/L – All profits and losses realized with long positions
- Realized sell P/L – All profits and losses realized with short positions
- Positions – Count of positions.
- Vol – The traded volume
- Slippage – The measured, average difference between the sent-price and execution-price price of all orders, stop losses, take profits and manual closings.
- MIT – The achieved average advantage due to usage of Limit Pullback orders