Managing Unfilled Limit Orders in TradersPost: Best Practices
Learn how to manage unfilled limit orders in TradersPost with features like “Allow Add to Position,” cancellation webhooks, and realistic price setting for efficient trading.
Limit orders are a powerful tool for precision trading, allowing traders to buy or sell assets at a desired price. However, managing unfilled limit orders—especially in volatile markets—can be a challenge. This guide explores the nuances of handling unfilled limit orders in TradersPost and offers practical solutions to streamline execution and reduce risks.
The Problem with Unfilled Limit Orders
Why Do Limit Orders Go Unfilled?
- Market Price Never Reaches Limit Price: The order remains active but unexecuted because market conditions didn’t align.
- High Volatility: Prices move too quickly for the order to fill at the specified level.
- Low Liquidity: Insufficient volume at your limit price prevents execution.
Unfilled orders can clutter your strategy and create risks if left unmanaged, particularly in fast-moving markets.
Managing Unfilled Orders in TradersPost
1. Use the “Allow Add to Position” Setting
When multiple limit orders are part of your strategy, TradersPost processes them individually if this setting is enabled. This ensures new orders are handled without interference from previous ones.
How It Works
- Check the Allow Add to Position option in your strategy subscription settings.
- Each limit order, even if unfilled, is treated independently and does not affect subsequent signals.
2. Automate Order Management with Webhooks
TradersPost allows you to send webhooks for order cancellation. Use these to automate the cleanup of unfilled limit orders after a specific duration.
Example Webhook for Cancelling Orders
{
"ticker": "AAPL",
"action": "cancel"
}
Set up alerts in platforms like TradingView or TrendSpider to trigger this webhook after a predefined time period or based on changing market conditions.
Tips for Preventing Unfilled Orders
1. Use Market Orders When Precision Is Less Critical
Market orders prioritize execution over price, reducing the risk of unfilled trades. Use limit orders only when achieving a specific price is essential.
2. Set Realistic Limit Prices
- Avoid setting limit prices too far from the current market level unless part of a deliberate long-term strategy.
- Analyze recent price ranges and liquidity to place realistic limits.
3. Add Time Constraints to Your Strategy
TradersPost doesn’t currently support native time-based expiration (e.g., “Good Till Date”), but you can simulate this using periodic checks. Combine these checks with cancellation webhooks to enforce time constraints on unfilled orders.
Why This Matters
Proactively managing unfilled limit orders:
- Reduces Risks: Prevents unexpected execution during rapid market shifts.
- Streamlines Strategy Execution: Keeps your active orders aligned with current market conditions.
- Improves Efficiency: Avoids tying up capital in stale orders.
Conclusion
Unfilled limit orders are a natural part of precision trading but require careful management to avoid unintended consequences. By using features like “Allow Add to Position,” automation via webhooks, and realistic price setting, you can minimize risks and maintain a streamlined trading strategy in TradersPost.
