Setting Take Profit and Stop Loss Relative to Market Order Fill Price on TradersPost
TradersPost currently calculates take profit and stop loss based on specified entry prices, but a future update will align these with the actual market order fill price to improve trading accuracy.
For traders using market orders on TradersPost, ensuring that take profit and stop loss levels align with the actual fill price is important for accurate execution. This guide explains how take profit and stop loss settings currently work with market orders and what improvements TradersPost is considering to make these levels more reliable.
Current Functionality for Take Profit and Stop Loss Orders
When a market order is executed on TradersPost, the exact fill price may vary due to slippage or fast-moving markets. Currently, TradersPost uses the initial price set by the user when calculating take profit and stop loss levels rather than adjusting based on the final fill price. This can sometimes lead to discrepancies, where take profit and stop loss targets are not precisely aligned with the market entry point due to this slippage.
Challenges with Setting Relative Take Profit and Stop Loss
Market orders do not have a fixed entry price, so any predefined take profit and stop loss levels may end up being slightly off if significant slippage occurs. For example, a market order intended to enter at $50 may fill at $50.10. If the take profit and stop loss are set based on the initial $50, they may not match the final entry point, potentially affecting the trade’s effectiveness.
Planned Improvements for Relative Position Tracking
TradersPost is considering a future update to dynamically monitor for fill prices. This enhancement would allow the platform to adjust take profit and stop loss levels based on the actual execution price, creating a more accurate alignment with the trade’s entry point. This adjustment would make the stop-loss and take-profit targets truly relative to the fill price, accounting for slippage and providing a more precise trading experience.
Tips for Managing Take Profit and Stop Loss with Market Orders
While this enhancement is in development, traders can manage relative levels by:
1. Setting Buffer Levels: Allow a small buffer for stop-loss and take-profit levels to account for possible slippage.
2. Using Limit Orders When Precision Is Key: If entry precision is essential, consider using limit orders instead, as they provide more control over entry price but are subject to fill availability.
Conclusion
For now, TradersPost applies take profit and stop loss based on user-specified entry prices, but a future update aims to make these levels relative to the actual fill price of market orders. By implementing this feature, TradersPost would allow for better alignment, helping users achieve more accurate exits based on true market conditions.
