Trading Blox provides a variety of risk limiting controls that can be added to a system as a source of ideas on which to build custom blox that are more tailored to the trader's goals.

 

Each of the risk managing blox provide their own approach to filtering orders, or by reducing the distance between the protective price and the close of each date,

 

Risk Managing Blox:

Description:

Correlation Risk Manager

This Risk Manager is used in the ADX, MACD, and Turtle built-in systems to limit the maximum number of correlated units.

Correlation Risk Manager Check Fills

This Risk Manager is used in the ADX, MACD, and Turtle built-in systems to limit the maximum number of correlated units.

Group Risk Manager

Entry orders are rejected based on violations of threshold values for each of the group risk sections enabled.

Total Risk Limiter

This risk manager allows you to select a maximum amount of risk you want at any given time, and then a method of reducing positions if your risk is too great.  If you choose "Reduce Positions" this block will sell a portion of your units to reduce to below the maximum.  If you select "Move Stops" the system will set new stops based on the maximum risk and place orders accordingly.

Unit Limiter

This block rejects entry orders for new units if the number of current positions in the same direction in closely or loosely correlated markets is greater than or equal to the user set maximum.

Order Fill Predictability:

 

Success in limiting new entry orders to reduce risk, limit position or unit correlations and the number of open position is highly dependent upon the order entry order’s selected execution method.  Success also requires the orders be controlled ahead of them being reported and which orders will be filled in the next trading session.  Knowing an order is going to be filled ahead of it being released is limited to market orders that only need a trading session to execute.  Orders that add price and or session timing conditions cannot be predicted with any reasonable level of certainty.

 

Entry Order Categories:

Execution Conditions:  

Market:

On-Open

On-Close

These orders are easy to apply order restrictions because their ability to be filled by the market is certain in most situations.  All that has to happen for these orders to be filled is for the market to price another trading session and the order will be filled.

Conditional:

On-Stop

On-Limit

On-Stop Open

At-Limit Open

On-Stop Close

At-Limit Close

All of these order execution types require trading session conditions that are not possible to reliably predict their ability for being executed.

 

Without predictability rigid order counts will create below expectation limiting results.  Controlling these types of orders so they allow results that are closers to the parameter values used to control orders can be closer when there is a percentage overage allowance, but the results will the control will allow values above and below the parameter values applied.

 


Edit Time: 9/20/2017 07:56:26 AM


Topic ID#: 196

 

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