﻿ Entry Day Retracement

# Entry Day Retracement

This parameter is used to determine if a new position would have been stopped out on the same day as entry.  It can also be used with systems that don't provide a protective exit price with their orders by using a special feature to disable entry-order bar protective order execution when this parameter is set to "-1".

Entry Day Retracement Calculations:

An Entry Day Retracement percent is created by multiplying the price-bar's Range, that is the distance between the high to the low price of the price-bar, to obtain a point estimate.

This point-estimate is then added, or subtracted from the order fill price to determine if the percentage applied would execute the protective order price so that a retracement price can be determined.  To trigger a protective price the retracement price must be beyond the protective entry-order protective price to enable a same-day exit from the position.

Example:

For long entries:

Exit-Trigger-Price = Order-Fill-Price - ( High - Low ) * Retracement %

For short entries:

Exit-Trigger-Price = Order-Fill-Price + ( High - Low ) * Retracement %

Retracement Percent (%) Rules: ^Top

An Exit-Trigger-Price is never more than the High, or less than the Low prices of the entry-bar.  An Exit-Trigger-Price is never more than the close for long entries, or less than the close for short entries.

A Retracement % of zero is the default setting, and that behavior is used as outlined below for an aggressive approach description. A Retracement % of 100 will use the extreme of the day for a conservative approach.

If the position was filled during the day (stop/limit orders), and the close is less than the stop for long entries or more than the stop for short entries, then the position is stopped out

If the position was filled on the open of the day, and the low is less than the stop for long entries or the high is more than the stop for short entries, then the position is stopped out

An Entry Day Retracement of less than 0, such as -1, will disable the entry day stop. This can be useful if you want to use stops for risk measurement purposes, but not actually place those stops into the market on the entry day.

Note:

When Trading Blox triggers a protective exit price order using the Entry Day Retracement process on the bar of entry the reference ID for that order will be zero.

 Last Edit: 5/8/2017 Edit Time: 5/8/2017 1:58:32 PM Topic ID#: 132

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