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FAQ - Trader

How exactly does the feature “Automatic signal tracking” works?

After initiation of the “Automatic signal tracking” feature the program starts to check signals of individual pairs in an interval of one second.
If:

the Stock Pair Trader will send orders to TWS to enter / exit. TWS will immediately (without any intervention of the user) send them to the stock market.

Type of the orders sent (Market / Limit) is given by pair settings (item 17).

How is the Limit of the order that is sent within “Automatic signal tracking” controlled by Stock Pair Trader?

  1. All Trader activities are recorder into an archive file (with records).
  2. Orders execution is evaluated for each pair separately. Let’s denote the original (sent) orders as OrderA and OrderB
  3. If the order(s) is/are not executed earlier than 60 second before the end of the set time interval, Stock Pair Trader will change the entry price of the order (orders) to the actual Bid (for Sell Limit), or Ask (for Buy Limit), respectively.
  4. If the order(s) is/are not executed earlier than 30 second before the end of the set time interval, Stock Pair Trader will change the type of the order (orders) to Market.
  5. If the order(s) is/are not executed until the end of the time interval, it will stay unexecuted:
    5.1    Stock Pair Trader will find out, which part of orders OrderA and OrderB has been executed. Let’s denote them ExecA, ExecB.
    5.2.    Stock Pair Trader will cancel original orders OrderA, OrderB.
    5.3.    If the OrderA was executed partially/fully, Stock Pair Trader will send a reverse Market order with an amount equal to ExecA.
    5.4.    If the OrderB was executed partially/fully, Stock Pair Trader will send a reverse Market order with an amount equal to ExecB.
    5.5.    Stock Pair Trader does not categorize reverse orders.

Example:

Based on the information provided above it is important that the entry and exit windows will be finished before the end of trading hours! Default settings of the entry window is 15:55 - 15:58 (Eastern Standard Time = New York)